By DALE QUINN

Housing starts got off on a stronger footing this year in Pima County, with nearly twice as many permits taken out this January compared with last.

Builders took out 201 new-home permits in January, says local housing consultant John L. Strobeck's monthly report.

Only five months in 2009 - May through September - exceeded the 200 mark, Strobeck says.

January is usually one of the lowest permit-volume months; January 2009 saw only 102 new-home permits provided, he said.

"Speculation is that builders want to start the year with some inventory to take full advantage of the tax credits and rebates," his report says. "This would indicate a strong first half of the year, with the second half tapering off."

Strobeck also said that while foreclosures dropped off slightly in January, the month normally has a low volume. There were 215 foreclosure closings in Pima County last month, nine fewer than in January in the previous year.

"Much of the time, January numbers are anomalies for the rest of the year and usually mean very little as both builders and home buyers are just coming off the holiday season and making plans for the rest of the year," Strobeck said.

Strobeck also pointed out that new-home-sales closings were at a low volume of 113 in January, but he said it's not unusual for the year to start with a low number.

Overall, Strobeck said, January's numbers were varied, with some bucking trends and others following them. That makes it difficult to predict what the numbers mean for 2010.

Contact reporter Dale Quinn at 573-4197 or dquinn@azstarnet.com

PIMA COUNTY NUMBERS

New-home New-home Resale median Foreclosure Date closings median sales price sales price* median price

Jan. 2010 113 $189,306 $185,000 $110,000

Jan. 2009 146 $215,000 $185,000 $130,000

Jan. 2008 257 $226,577 $195,000 $151,000

* Does not include foreclosure resales

SOURCE: John L. Strobeck, Bright Future Business Consultants

THE NATIONAL ANGLE

Housing starts showed signs of life in January, rising to their highest level in seven months, according to Commerce Department data released Wednesday.

Starts rose 2.8 percent to a seasonally adjusted annual rate of 591,000, the highest level since July.

Building permits - a separate, less-volatile measure of new construction - fell 4.9 percent last month to a seasonally adjusted annual rate of 621,000. This follows a cumulative 17.8 percent gain in the prior two months.

- Greg Robb, MarketWatch

THE PHOENIX-AREA ANGLE

New-home sales in Phoenix and its suburbs tumbled last month to the lowest level in decades, according to the latest report from housing analyst RL Brown.

Sales totaled 479 last month, after 1,312 in November and 956 in December. The total was down 35 percent from January 2009, when 733 sales were reported.

Also last month, Phoenix-area new-home construction permits dropped to 678, down from 799 in December, but way up from January of last year, when permit activity bottomed out with just 301 permits.

- Edward Gately, East Valley Tribune

Originally published by DALE QUINN, ARIZONA DAILY STAR.

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