New home construction picks up slightly

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By Jessica Heffner, Staff Writer 1:01 AM Thursday, November 19, 2009

Thanks to new homeowners looking for a bargain, Butler County has increased the number of new homes constructed this year while the national average remains in a downturn.

According to residential building permit data compiled by the Home Builders Association of Greater Cincinnati, single-family housing starts were up in the county in September by 40 percent, to 42 new homes constructed. Year-to-date, construction is up about 2 percent.

While not outstanding, Dan Dressman, executive director of the HBA, said the $8,000 federal stimulus tax credit for first-time home buyers helped boost numbers.

In Butler County, where areas such as Middletown and Hamilton have reasonable lot prices, new homes are still going up in the more affordable $100,000 range. But in Warren County, higher home prices and lot prices aren’t as enticing to new homeowners, he said.

“The $8,000 tax credit is not as applicable there because the prices are higher and not as many first-time buyers are interested ... so there is more product available,” he said.

Dressman said he is hoping the addition of the $6,500 tax credit for qualifying existing homeowners will help boost construction at higher price points.

Overall, new home construction and real estate should continuing with modest gains into 2010, largely in part to stimulus incentives coupled with low interest rates and high inventories, said Alfred “Skip” Shepard, senior vice president and chief investment officer of Hamilton-based First Financial Bank.

However, that could change, he said, based on consumer interest. The first-time home buyers and new existing homeowners tax credit is available for eligible purchases through May 1, 2010.

Contact this reporter at (513) 705-2843 or jheffner@coxohio.com.

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