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HAMILTON — The number of home construction permits issued in Butler County last year was down for the second year in a row, reflecting a national slowdown in the housing market.

The number of building permits for new single-family homes was down an average of 9 percent across Butler County cities. Through September, the number of permits issued was down by a third in the townships.

Up-to-date figures for the townships were not available due to a database problem at the Butler County Department of Development.

"I've been in the business for a long time and I've never seen a market like this," said Maronda Homes Cincinnati Vice President Bill Pucillo. "We've still got interest rates in the fives, unemployment is low and inflation is in check. Everything is in place for a boom market, but it's not."

Pucillo blamed low consumer confidence fueled by terrorism fears and the scaling back of the auto industry. Dixon Builders Vice President Steve O'Callaghan said an overstock of new housing is also to blame.

In 2005, O'Callaghan said, most new homes were sold before they were completed. Last year, homes sat for one to three months before selling.

Terry Sievers, president of the Midwest Region for Drees Homes, said that inventory levels have started to go down, but noted the overage not only slowed building and sales. It also caused prices to drop.

According to the Cincinnati Area Board of Realtors, sale prices were down about half a percent through November compared to 2005. However, Sievers said, "You have to get over the fact that the house you're selling is going to sell for less than it would have a year ago. The house you're going to buy is also going to cost less and the difference is probably going to work out in your favor."

Across Butler County, Middletown was the only place to see a noteworthy increase in permits issued. New and growing housing developments such as the Renaissance project in the East End, and Riverbend and Arbor Pointe in the northwest corner of the town contributed to the increase Middletown Planning Director Marty Kohler said.

"Still, when you look at the amount of housing stock in Middletown, those are fairly small numbers," Kohler said.

Contact this reporter at (513) 820-2025 or cdumond@coxohio.com.