New construction continues to drop in Tooele County as the industry heads into its traditionally slow winter season.

There were 117 total residential and commercial building permits issued in Tooele County during the third quarter of 2008, compared with 164 for the third quarter of 2007, according to Karen Richards, building inspector for Tooele County. That represents a 28.7 percent drop.

Bart Hamatake, a general contractor and owner of Hamatake Construction in Grantsville, said work is scarce, and winter is not the only reason why.

“I’ve seen a huge increase in phone calls from subcontractors and suppliers who are looking for work or trying to sell products like lumber, insulation, roofing and framing,” he said. “It’s hard to say exactly why things are slower, but I think the economy is definitely a part of it. People are more worried about if they’re going to have a job in a year or even a month, so they’re more hesitant to buy a home, car or anything else expensive. I’m lucky that I’ve got work for the winter, but there are some guys out there who do what I do that are wondering what their next job is going to be.”

Burt Beacham, owner of Beacham Masonry and Construction in Tooele, said his jobs have dropped off with colder temperatures.

“Things are pretty slow for us now right now, and it probably started slowing down around two months ago,” he said. “Not even one house that we helped build has sold since then. Usually it does get much better once spring comes around, but you never know now since people are being tighter with their money and being scared by what they read or hear in the media.”

Grantsville contractor Gordie Fields agreed that the news media is partly to blame for the decline in local home building. He said gloomy reports on the national homebuilding industry, although having little relevance to local conditions, have turned buyers away.

“The national media tells us how bad things are, and people believe it and don’t want to buy,” he said. “However, even though we are overstocked with homes here, we do have low interest rates and low-priced homes in Tooele County. The national media reaches so many people, though, so it’s tough to make people believe something different from what they say.”

Despite the recent construction slowdown, 2008 appears to be keeping pace with 2007 in terms of permits issued within the county. According to figures from the Tooele County Engineering Department, from the beginning of January to the end of October of this year, 386 building permits were issued, with 125 of those being single-family dwellings — a rate of approximately 39 buildings per month. To compare, 2007’s full-year total was 478 permits issued, with 221 of those being single-family homes — a rate of approximately 40 new permits being issued per month.

And there’s evidence Tooele County is outperforming the Wasatch Front in terms of construction activity. According to Construction Monitor, a Cedar City-based company that tracks building activity throughout the western United States, from Jan. 1 to Oct. 31 there were a total of 8,342 residential permits issued on the Wasatch Front, compared to 15,220 residential permits issued from Jan. 1 to Dec. 31 in 2007. On average, there were 1,268 permits issued per month for 2007, and there was an average of only 834 issued for 2008.

Dan Grgich, owner of DG Construction in Tooele, said the Wasatch Front’s slower construction activity may have to do with its higher foreclosure rate. However, he said things are still rough for his company in Tooele County.

“There are a lot more foreclosures along the Wasatch Front, in places like the growing communities of Saratoga Springs and Herriman,” he said. “However, I can’t get any construction money to build a spec home here. I hope they drop the interest rates on homes because then more people can qualify for a loan. I really hope this housing crisis turns around.”

Doug Radunich: dougrad@tooeletranscript.com