story by Kim Souza
ksouza@thecitywire.com
Homebuilders in the region’s four largest cities received 201 permits last month to start new building new homes in Fayetteville, Springdale, Rogers and Bentonville.
These cumulative new residential permits were valued in excess of $47.807 million, up 34% from the same month in 2012. Last year the same cities issued 132 new home permits valued at $35.6 million.
Homebuilders in the region say they are working at a fast pace trying to get inventory up as new home sales are stronger and in most cases the speculative homes are sold several months before they can be completed.
Tim McGuire, owner of Cornerstone Construction in Bentonville, said in recent months the demand for new homes has been steady and there is not much inventory on the market in several price categories.
Bentonville led the region with 79 permits valued at $21.521 million in May, up 123% from the year-ago period.
Fayetteville issued 53 new residential permits with a value of $11.065 million last month. This was nearly twice the building pace from the same time last year with 23 permits worth $6.030 million.
Builders in Rogers started 49 new homes last month with a cumulative permit value of $9.3 million. A year ago, the city issued 36 permits worth $6.564 million.
In Springdale the builders were also busier with 20 permits issued last month at a value of $5.920. Permits values rose 68.7% and contractors started 7 more homes in May, than in the prior-year period.
The new home inventory in the region last month totaled 290 properties listed on the Multiple Listing Service website. Agents say these homes include newer properties that may have been owned briefly and built in the last year or so.
Builders polled by The City Wire in the first quarter of this year said they had no inventory to speak of and hoped to get some new construction projects up and finished so they had product to show this summer as the region’s population is growing and home prices are rising again.
The four cities issued a handful of new commercial permits in May with a value of $3.83 million. Commercial permit values totaled $51.484 million a year ago, lifted by nearly $40 million in construction projects at Fayetteville High School.