For home builders in Tucson, the best thing about 2008 is probably that it's half over.
After a more moderate decline in 2007, new home sales have plunged this year to levels not seen since the early 1990s, according to information from market reseach firm Bright Future Business Consultants.
The number of single-family home permits issued in June fell to 320, down 35 percent from a year ago and down 15 percent from May, according to Bright Future Business Consultants' Southern Arizona Housing Market Letter, released today. Permits in June 2005 totaled 1,240, the report said.
Deepening problems in the economy such as the rapid rise in oil prices and further tightening of credit markets are making this year even more difficult than some builders expected. At least one local builder, Sierra Pacific Homes, has filed for bankruptcy protection this year.
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Now builders are hoping that the market will start to regain its footing in the months ahead.
"Another month we get behind us, the closer we are to having (the market) turn around," said Craig Campbell, president of local builder Miramonte Homes.