Pasco County's housing market continued its downward slide last year, with only 1,111 starts for single-family homes.
The number represents a 43 percent drop from 2007's total of 1,955 and is down about 85 percent from the 2005 peak of 7,252.
"Wow," said Blucher Bridges, a real estate agent for Standard Pacific Homes who sold a respectable 35 homes last year in Wesley Chapel's Seven Oaks community. "It's going to be a rough year. They're saying it'll be 2010 before we see a turnaround."
Analyst Marvin Rose grasped for a silver lining.
"The good news is that inventory is being worked off with starts so low," he said. "It's no surprise. Pasco has been hit as hard as anybody."
Rose said the area is about "halfway through this," and he expects things to pick up gradually by the end of the year.
"I don't think anybody expects a rapid rebound."
Besides the credit crunch and the overall sour economy, the main reason for the lack of new housing permits is competition from foreclosures and short sales.
"Some construction costs have gone down, but not enough to make them competitive," Rose said.
Some builders are discounting their dirt.
Engle Homes, whose parent company is in bankruptcy, is cutting in half the price of premium lots in its most popular active-adult community, Tampa Bay Golf and Country Club in San Antonio. Lots that sold for $22,000 are now going for $11,000. Five golf home sites that sold for $15,000 are $7,500.
"It's the worst I've ever seen it," said Joseph Narkiewicz, spokesman for the Tampa Bay Builders Association, which includes Pasco. "And I've been in this business for 30 years."
Lisa Buie can be reached at buie@sptimes.com or (813) 909-4604.
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