The number of
building permits issued in Volusia County for new residential projects
declined sharply in the third quarter amid growing concerns over the
economy.
The number of permits
issued in the quarter for new commercial projects also fell, but for the
year-to-date remains ahead of last year’s pace.
Residential
During the three-month period that ended Sept. 30, there were
306 residential building permits issued countywide. This is 69 fewer
residential permits than those issued during the second quarter of this
year. There were 518 single family home permits issued during the third
quarter of last year, according to permit data gathered by the county
Division of Economic Development from the county and city building
permit offices.
The average value of
residential permits issued during the third quarter this year was just
under $243,500, down from the $265,200 average value for the new homes
permitted during the second quarter of this year. During the third
quarter of last year the average residential permit value was $279,250.
“We’re certainly
seeing a drop in the number of building permits issued,” said Janice
Cornelius, the county’s chief deputy property appraiser, who also noted
that the volume of permits issued for remodeling projects also is down,
compared to year-ago levels. “Everybody’s holding tight right now and
waiting to see what the housing market is going to do. The big question
on builders’ minds is: ‘Has the market bottomed out yet?’”
While sales of
existing single-family homes in Volusia County have picked up
recently—thanks to falling prices— builders for the most part have been
hesitant to proceed with home construction unless they have commitments
in hand from buyers, area industry observers say.
“We’ve pulled back
and made adjustments,” said Roger Van Auker, vice president of
development for the Henin Group, a DeBary-based real estate company that
is developing a gated luxury community called Riviera Bella on the St.
Johns River in DeBary.
“We’re not developing
any more lots,” said Van Auker, who added his company has eight
ready-to-move-in luxury homes available at Riviera Bella. “We’re happy
with the inventory we’ve got.”
In September, Henin
began construction of a presold $1.5 million luxury home at Riviera
Bella, which should be ready for the buyer’s occupancy by next summer,
said Van Auker.
Since 2004, when
Henin completed its first model homes at Riviera Bella, the company has
built 125 homes in the 300-acre community, which has the potential to
grow to as many as 444 homes.
Because Henin is
independent and locally owned, Van Auker said his company has the
ability to slow the build out of its planned communities until market
conditions become more favorable, unlike some national competitors.
Van Auker said his
company remains bullish about the long term growth potential for DeBary
and the greater southwest Volusia area. He said Riviera Bella is home
already to a number of residents who commute to jobs in the metro
Orlando area.
The proposed Central
Florida commuter rail project’s station in DeBary will make southwest
Volusia even more desirable as a place to live for people who
work in the metro Orlando area, Van Auker believes.
Growth continues to
occur in pockets in other parts of Volusia County as well. In the third
quarter, DeLand issued 76 single family home permits, the most of all
jurisdictions. New Smyrna Beach was next with 54 residential permits,
Port Orange issued 39, Daytona Beach issued 31, and Ormond Beach issued
22 residential permits.
The county issued 31
residential permits in the third quarter, most of them west of
Interstate 95. Rick Michael, director of Volusia County’s Division of Economic Development, said the final three months of 2008 should be
telling as to whether the downturn in the third quarter in residential
construction activity is an aberration or a sign the housing market
slump is worsening.
“I still think we
bottomed out in the fourth quarter of 2007,” said Michael. “We had a
moderate gain in the first quarter of 2008, followed by a healthy
increase in the second quarter.”
Commercial
In the three-month period that ended Sept. 30, 43 commercial
building permits were issued countywide, down from the 56 commercial
permits during April-
May-June and the 62 commercial projects permitted during the third
quarter of 2007.
The combined
value of the commercial projects permitted during the quarter that
ended Sept. 30 was $78.9 million, down from the $114.2 million value
of the projects permitted during the second quarter of this year and
$95.7 million for the projects permitted during the third quarter of
last year.
While
commercial building permit activity slowed in the most recent
quarter, the 184 commercial permits issued in the county during the
first nine months of this year is up compared with the number issued
through the first nine months of 2007 (159). In fact, the total
number of commercial projects permitted through the first three
quarters of this year matches the total number commercial permits
issued in all of last year.
“That’s kind
of a surprising figure,” said Cornelius of the increase in
commercial
development activity this year. Cornelius added that commercial
development held its own last year in comparison with 2006 levels,
even though residential construction last year declined sharply.
Michael said
that when looking at the first three quarters as a whole, commercial
development “is as strong as it has been.”
Notable
commercial construction projects under way in Volusia County include
The Pavilion shopping center in Port Orange, and the Daytona Live!
entertainment/retail/office mixed-use complex that is being built on
W. International Speedway Boulevard in Daytona Beach, across the
street from Daytona International Speedway.
Port Orange
has had the biggest jump in commercial development activity so far
this year with 31 permits issued for commercial projects through the
first three quarters of 2008, compared with only five issued during
the same period a year ago.
Other cities
experiencing an increase in commercial development so far this year
include New Smyrna Beach with eight permits issued, and Edgewater
with seven issued.
Daytona Beach
has issued 77 commercial permits so far this year. This compares
with 69 commercial permits issued through the first three quarters
of 2007. Orange City has issued 32 permits so far this year,
compared with 23 through the first three quarters of 2007.
Unincorporated
Volusia County also has seen an increase in commercial development
with 15 permits issued so far for projects this year, compared with
nine issued during the same period a year ago.
