Regional building activity down 45%

Activity in the regional building sector continues a steep decline, with the value of permits issued during September in Fort Smith, Greenwood and Van Buren down more than 45% compared to the 2009 period.

A construction decline in Fort Smith is the biggest contributor to the regional drop.

The combined value of building permits issued during September in Fort Smith, Greenwood and Van Buren totaled $9.158 million, down 45.1% compared to the $16.696 million during September 2009.

Total value of the 210 permits Fort Smith issued in September was $7.474 million, down 45.4% from the September 2009 period.

Commercial permitting was down in September, with the city issuing commercial permits valued at $2.269 million, down 69.7% compared to commercial permit values in September 2009. A big component of the September 2009 commercial total was a permit valued at $3.12 million for the Eastside Baptist Outreach Center.

For the first nine months of 2010, building permit values in Fort Smith total $84.206 million, down 27.17% from the $115.627 million during the same period of 2009.

Residential construction in Fort Smith remains strong despite the overall decline. The city issued 26 permits during September valued at $3.436 million, up 10.5% in value compared to the 29 permits valued at $3.109 million in September 2009.

The new home construction sector in Fort Smith has been hot for most of the year. June marked four months of year-over-year gains in the number and value of new home construction in Fort Smith.
• August 2010: $2.923 million, compared to $2.092 million in August 2009
• July 2010: $1.878 million, compared to $2.425 million in July 2009
• June 2010: $5.159 million, compared to $2.261 million in June 2009
• May 2010: $4.789 million compared to $1.716 million in May 2009
• April 2010: $4.51 million compared to $4.49 million in April 2009
• March 2010: $5.976 million compared to $2.02 million in March 2009

A federal tax credit for first-time homebuyers is the primary reason for the strength, David Hughes, executive director of the Greater Fort Smith Association of Homebuilders, has said. The federal tax credit provided up to $8,000 for first-time home buyers and up to $6,500 to home buyers ended in May, with a possible extension through September for homes under contract.

GREENWOOD, VAN BUREN
September permit values in Greenwood totaled $1.210 million, a big increase from the $514,905 in permit value in August 2009. The September gain came courtesy of 2 new residential permits with a total value of $590,275, and a $350,000 permit to the Greenwood Public School District for renovation of a gym used by North Main Elementary.

Van Buren posted a September permit value total of $473,800, down 80.9% form the $2.485 million in September 2009. In September, the city issued 8 residential permits valued at $396,000, a big drop from the 27 permits valued at $1.72 million in September 2009.

Also, there were no commercial permits issued in September, compared to commercial permits valued at $532,637 in September 2009.

However, Van Buren is likely to have a respectable 2010 permit total thanks to a $13.587 million permit issued during April for King Elementary School.