Housing starts cut in half

The Associated Press and The Daily Inter Lake

New-home construction continues to slump in the Flathead Valley and across Montana.

Flathead County housing starts are down 50 percent from the first quarter a year ago, according to the Montana Building Industry Association.

Flathead County had 50 single-family housing starts in the first three months this year, compared to 100 last year. In 2007 the number was 179 and in 2006 it was 221. The peak first-quarter housing number was 276 in 2005.

In figures released Wednesday, the state association said housing starts in Montana have declined for the seventh straight quarter and 48 percent from last year.

Statewide, there were 424 housing starts in the first quarter this year, down from 829 a year ago.

Silver Bow County had a first-quarter decline of 66 percent compared to last year. Gallatin, Missoula and Cascade counties all had first-quarter declines of more than 50 percent.

Flathead County's 50 housing starts were the highest of any county in the state.

In a press release announcing the numbers, the association said the housing decline was expected due to the slumping national economy and low levels of consumer confidence.

Association Director Dustin Stewart said "things could obviously be better," but looking on the bright side, buyers can find great values.

He also said that beginning in May, first-time home buyers may have better opportunities to get down-payment assistance, depending on the outcome of state legislation that would send some federal stimulus money into home-buying programs.

According to Shelby Nash-Hunter, president of the Flathead Building Association, "If a buyer can manage it, now is a great time to buy - land prices are down, material costs are down and labor is available."