Builders Remain Optimistic Despite No Growth

The nation’s housing market is showing little sign of revitalization; in fact, nationwide, the demand for building permits declined by more than 3 percent last month.

Over the past few years the building of new single-family homes in eastern Idaho has plateaued, but builders and city planners say growth is on the horizon.

The sound of construction is not as common as it once was.

In the first half of 2007, Idaho Falls issued 196 building permits for single-family homes, this year the number has dwindled to 37.

Idaho Falls city planner Brian Tomsett said it’s been worse.

“We are already better than 1982, and that was the worst year we had in the last 30 years,? Tomsett said. ?We are already passed that point, so that’s encouraging.”

While it’s been a rough few years, assistant planning director Brad Cramer said he, too, remains optimistic.

“I see a lot of positive things on the horizon. Economically I still think we are very sound, although again back to the days of 200 or 300 homes a year, maybe not for a while.,” Cramer said.

Due to a small business change, Rockwell Homes is still building, because they are building smaller homes that are still in demand.

“Our competition is foreclosures and short sales and with our business we have to adapt to compete with that,? Rockwell Homes Vice President Greg Hansen said.

Rockwell has cut back on the number of homes they build to keep the company healthy, but Hansen said they have seen an increase in business this summer and feel the momentum building.

?We are actually picking up speed and I’m excited and optimistic for it,” Hansen said.

Hansen said he attributes this year’s slower housing market to the expiration of the $8,000 first-time home-buyer tax credit.

“The problem is as soon as that ended, the home sales just crashed and it happened across the board. It was another false bubble that was created and didn’t need to be there,? Hansen said.

But with new projects coming to the area such as Areva and the Idaho Falls Event Center, there is cause for optimism.

“It may be slow it, maybe not explosive growth, but it’s positive on the horizon,” Cramer said.

Cramer said the last thing he wants to do is give the impression the recession is the new normal, but he said the new normal will not be the explosive growth we saw before the recession.

National economists suggest a healthy housing market would build 1.2 million homes a year, twice as many as the nation is currently building.