Housing industry rebuilds

Business wasn't good for Collier Construction during the latter part of 2008, but last month was a different story.

Riah Collier, a co-owner of the Augusta company, said he has sold three homes and started construction on two others since February.

Mr. Collier's housing boomlet is in line with the rest of the country. Nationally, there was a 22 percent increase in housing starts for multi-unit buildings and single-family homes between January and February, according to statistics released by the U.S. Department of Housing and Urban Development this week. Building start-ups increased by 30 percent in the South.

"We've just had a big uptick in contracts," Mr. Collier said. "I had no calls in January. Now, we're getting calls night and day."

The buying and building can be attributed to consumers regaining their confidence, said Tom Lifsey, the president of the Builders Association of Metro Augusta.

"Now that people are seeing the economy settle down, they feel like they can buy," he said. "It's really a good thing, because so many people are employed by building a house."

Mr. Lifsey, who owns LTJ Builders, said traffic is up about 10 percent at his business but there are not many homes being built.

Though house buying might continue to do well, construction on new homes will likely plateau, said Eugene James, the director of Metrostudy, a housing market research company. Last year's housing slump caused many contractors to have an oversupply of newly built homes.

First-time home buyers are more inclined to buy up some of the existing inventory, Mr. James said. Until Dec. 31, those home buyers will receive an $8,000 tax credit.

"They realize this is the best time to buy," he said. "They're getting $8,000 cash back, and the house prices are adjusting downward. It's a great time to buy."

Hayley Jones and her husband, Randall, took advantage of the housing market earlier this month when the couple bought an 1,800-square-foot home in Martinez from Collier Construction.

Mrs. Jones said she and her husband, an Army specialist at Fort Gordon, were excited to have a home after spending two years in an apartment in Bavaria, Germany.

"We just thought this was a great time with the homeowner tax credit and the affordable houses," she said. "I think we're really getting our money's worth."

The "smart buyers" market has helped business increase 30 percent last month from the same time last year at Ivey Residential in Evans, co-owner Matt Ivey said. His company has sold or built 28 homes since December, mainly in Grovetown.

The industry is likely to improve if unemployment decreases and consumer confidence continues to increase, Mr. Lifsey said.

"We'll be able to bounce back," he said. "We're hoping spring will look even better. People just have to believe things are getting better."

Reach Stephanie Toone at (706) 823-3215 or stephanie.toone@augustachronicle.com.