State housing permits hit all-time low

Tight credit and economic uncertainty continue to take a toll on the state's housing-permit numbers.

December's housing-permit statistics released Monday by the state Department of Economic and Community Development showed 253 approvals statewide, up nearly 18 percent from the same month the previous year. But 2011's total permits in Conneticut were off more than 16 percent from year-end figures in 2010, reflecting the lowest level on record.

Permit numbers in the region were down even more than the statewide figures, off 27 percent.

"I think we're going to have a slow climb up," Renee Main, executive officer of the Builders Association of Eastern Connecticut, said. "People are having trouble getting mortgages."

Renee Main, executive officer of the Builders Association of Eastern Connecticut, said homebuyers with anything less than stellar credit are having difficulty getting mortgages. What's more, it is taking up to two years to close deals, she said.

The 2,837 permits approved last year was the smallest number recorded over the past eight years. By contrast, 10,344 permits were issued in 2004, the first year numbers were compiled statewide.

In the region, only Lisbon, Old Saybrook, Stonington and Waterford saw more housing-permit activity last year than during 2010. Lisbon permits increased from three to six, Old Saybrook from nine to 25, Stonington from 19 to 21 and Waterford from 11 to 14.

On the down side, Norwich housing permits went from 33 to eight, Groton from 36 to 14 and Montville from 31 to seven.

Main said the builders association's home show earlier this month seemed to indicate the market was getting ready for a recovery. But the uncertain political environment as the country gears up for a presidential election, she said, has created some new uncertainties.

As an example, she said, a buyer for the association's House of the Year just backed out of a closing that had been scheduled today.

On the up side, interest rates are expected to remain low through 2014, Main said, which should spur home building at some point. She expects a modest increase in building permits this year.

"People are getting busy again," she said. "That bodes well for us."

l.howard@theday.com