Permit activity stalls

For the third consecutive month, housing starts nationwide suffered declines, indicating that the booming housing market is slowing, according to published reports.

Nationwide, housing starts fell 2.2 percent last month to a seasonally adjusted annual rate of 1.609 million units, according to the Commerce Department. The decline followed a revised 2.8 percent drop in July.

Although starts have tapered off during the summer, home-building activity remains high, according to Commerce. August starts were up 3 percent from a year earlier.

Mortgage rates have remained near record lows for several weeks, suggesting that the housing market will remain healthy for the foreseeable future. The Federal Home Mortgage Corp. reported last week that the 30-year fixed-rate mortgage rate was 6.18 percent.

Dennis Smith, president of Home Builder's Research in Las Vegas, said Thursday that the slowdown is reflected in permit activity in Southern Nevada.

"We do things differently in Las Vegas, though, than they do in the rest of the country," Smith said.

"They pull permits and can sit on them for as long as a year. When a permit is pulled in Las Vegas, construction on that home begins almost immediately."

Smith, who was still compiling his August data, said in North Las Vegas, for instance, 15 permits were pulled in August. In July, the number was 148.

"Year to date, we're running about 4 to 5 percent below last year," Smith said.

However, he expects a big jump in starts.

"We're going to see skyrocketing numbers in North Las Vegas because of Aliante," Smith said.

The new master-planned community by North Valley Enterprises is finishing up grading and laying infrastructure. Housing will follow soon.

"Henderson, on the other hand, has shown a down trend in permits the past 18 months because its master plans are nearing buildout with the exception of Anthem," Smith said.

"We'll see new activity when Tuscany (at Lake Mead Drive and Boulder Highway) gears up."

He said activity for permits in the city of Las Vegas has been increasing and soon will be off the charts with construction beginning in the far northwest valley.

"I've been reporting for two years that the area west of (U.S. Highway) 95 and north of Centennial (Parkway) would start booming as soon as the 2860 water line was laid," Smith said. "Well, that's done and houses are going to be popping up in that area like weeds."

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