Yes, they are down. According to the local paper, the building permits are down by 50%, and that is a significant decline. Part of the reason is due to tougher lending practices. In Mesa County, a majority of our builders are smaller and self-employed. Therefore, the lenders aren't lending them the money to build their next home until the home they are currently building is under contract or sold. The lenders do this in order to reduce their risk. Another reason is a number of builders decided to build larger more expensive homes and now those homes are sitting on the market longer than planned, partly due to the tougher lending practices. Not as many people can afford to buy those nice expensive homes. However, there are a lot of homes out there for sale and it is a great time to find some good deals. Especially, if you are willing to invest a little sweat equity.
Far fewer housing permits issued - Article from Daily Sentinel
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