Home-building permits decline

Applications for home-building permits nationwide, a key gauge of future construction, fell in September by the largest amount in five months -- a discouraging sign for the industry.

Representatives for the industry told a congressional panel yesterday that the $8,000 tax credit for first-time homebuyers needs to be extended and expanded to ensure that the housing sector will emerge from the recession. The Obama administration has not decided whether to support any extension.

The Commerce Department said applications for building permits fell 1.2 percent, the biggest decline since a 2.5 percent drop in April. It likely means construction will weaken a bit in coming months, partly because builders had accelerated projects to complete them before the tax credit expires Nov. 30.

September data for the Richmond area are unavailable. But the number of permits in the first six months of the year was 918, down from 1,889 in the same period a year ago, according to Integra Realty Resources Richmond. The area is for Richmond and Hanover, Henrico, Caroline, Chesterfield, Goochland, New Kent and Powhatan counties.

"I am hearing that we are bottoming out or we are close to it," said Tom Tyler, a senior analyst with Integra. "Realtors, builders and developers are looking for stabilization and improvement next year."

Times-Dispatch staff writer Carol Hazard and The Associated Press contributed to this report.