Total building permit values down in March; New home work up

The value of March building permits issued in Fort Smith totaled $21.48 million, down 14.1% from the value of permits issued in March 2008.

However, permits for new home construction improved in March.

Of the 315 permits issued by the city of Fort Smith in March, 21 were for new home construction, and came with a total value of $2.02 million. In March 2008, the city issued just 13 permits with a value of $1.37 million.

Dave Hughes, executive director of the Greater Fort Smith Association of Home Builders, said the regional housing market is starting to loosen up, with a federal $8,000 tax credit for first-time home buyers and low interest rates pushing demand back into the market.

“Home builders began pulling back last summer on building speculative housing. Instead they concentrated on pre-sold custom work. While this was a good move to avoid sitting on inventory, it also emptied the housing pipeline of spec houses,” Hughes explained.

The city also issued 46 commercial permits for a value of $17.94 million. In March 2008, 40 commercial permits valued at $21.26 million were issued.

Repair work from April and June 2008 hail and wind storms continues to show up in the permit activity. The city issued 189 repair permits valued at $1.08 million in March.

Of the 9,610 permits issued in 2008, 8,674 were for repair permits for homes (7,641), apartments (127), duplexes (202) and commercial structures (704). Not all the permits were related to damage from the storms, but the number of repair permits issued in 2008 was 488.4% greater than the number issued in 2007. 

Van Buren city officials issued 70 permits in March for work valued at $2.182 million. Of that, $503,000 was for single-family residential work and $1.25 million for an apartment complex at 1032 S. 30th St.