By The Sun News, Myrtle Beach, S.C.

Oct. 23--More building permits for new construction were issued last month as Grand Strand home builders report business is up for the first time in almost two years -- but industry leaders differ on whether the trend will continue.

The number of building permits in the Myrtle Beach area dropped almost 50 percent in the first half of the year, when compared with the year before, but September showed increases in Horry County.

The number of residential new construction permits issued in Horry County in September was 155, up 28 percent from the 121 issued the same month last year. The number of permits also increased in August.

Georgetown County issued 29 permits for new construction in September, a slight increase from August but still down from last year. Brunswick County, N.C., issued 38 permits in September, up from 22 in the same month last year, but about the same as the last several months.

"The last two months there has been a slight increase, a different trend than in the past," said Steve Gosnell, the director of infrastructure and regulations for Horry County. He added that there isn't a clear indication permits will continue to increase.

"It's going to take more than a couple months to determine that this industry is turning around," Gosnell said.

But some local home builders see the latest increase in business as a sign of better times ahead.

"I think we're in the beginning of a turnaround," said Fred Coyne, the president of the Horry Georgetown Home Builders Association. "Will we have some months where we don't have an increase? Sure. I just think you're going to see the increase pick up and rise and fall a little bit."

He said that the last few months of the year may slow for builders, as they usually do in the holiday season, but that things should improve in 2010.

Coyne said that a recent association meeting was different than the monthly meetings six months ago when there was anxiety and complacency.

"There's certainly a level of confidence that is rising," he said. "A lot of us are getting busy again, and the whole mood was much more positive."

Hal Dixon, one of the owners of Flagship Construction, said that the company has received 158 new construction permits, up from 97 last year. This summer was one of the busiest the company, which primarily builds houses that cost between $120,000 and $200,000, has ever had, he said.

"There is a market for that price range house obviously, and that's what we are trying to satisfy," Dixon said.

The first-time home buyer's tax credit, which gives people up to $8,000 when they buy a house, has helped boost new home sales, he said. Even if Congress does not extend the credit, which is set to expire Nov. 30, he is positive that business will continue to improve.

"I'm optimistic. There's been a lot of demand, people just haven't done anything because they were scared and nervous," Dixon said.

Now that the national economy is showing signs of improvement, people are gaining confidence, he said.

Flagship has cut prices by $20,000 to $25,000 for each house as material and labor costs have dropped, and the good deals are also attracting some buyers, Dixon said.

Berkley White, vice president of Classic Homebuilding and Design Inc., said that he has seen consumers' confidence improving, and it is translating into more business.

The company has received twice as many permits as it did a year ago, the first time in almost two years the business has seen this kind of increase, he said.

"I think people are believing we are at the bottom of this cycle and they want to take advantage of the prices where we are today," White said.

People who may have been waiting to buy are making purchases now, and more are starting to express interest, which he said will translate into more building.

Not all builders are so optimistic. Will Rabon, the president of Rabon Construction in Surfside Beach, said that he doesn't think the slight increase in activity is going to continue.

"Personally, I don't have a lot of confidence that that is going to hold out," he said.

Rabon is working on several houses, but hasn't had any new interest that could turn into additional projects after they are complete.

"We are way off to where we have been, so it's our worst year in years, but we're still working," he said.

Contact ADVA SALDINGER at 626-0317.

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