A wave of new housing and commercial construction could soon break across the greater Wilmington area.

New Hanover, Brunswick and Pender counties are all reporting increases in new single-family and commercial permits for construction, mirroring a national trend for new development and signaling a small regional economic recovery despite recent high unemployment figures.

“Things are starting to happen,” said Donna Girardot, executive director of the Wilmington Cape Fear Home Builders Association. “A number of our production builders and developers are reporting more activity and interest from qualified buyers, and they are seeing a lot less tire kickers.”

That may be more evident in New Hanover County, where permits for new single-family homes surged from 33 in July 2011 to over 275 new permits reported in January.

Permits for new commercial construction also increased throughout the county, rising from a mere three in July 2011 to more than 40 in January for new construction — the lion’s share occurring in Wilmington and in the Porters Neck and Monkey Junction areas of the county, according to records.

Across the river in Brunswick County, there was an average of 78 new single-family permits pulled between July 2011 and January, with much of the new single-family development occurring in Leland, Oak Island and unincorporated communities throughout the county, according to county records. The county also continued impressive gains in permits for new commercial construction, averaging 29 per month between July 2011 and January.

Pender County reported a 45 percent spike in new single-family construction permits between January and February; however, the county remains stagnant in new commercial activity after reporting zero permit activity, according to county records.  

As new building permits surge locally, national economic indicators reveal signs that the spring and summer month construction could be at its highest levels since the start of the Great Recession. 

Raleigh-based FMI Corp., one of the largest providers of management consulting and investment banking to the engineering and construction industry, recently released its 2012 Construction Outlook Report, estimating a 5 percent — or $826.3 million -- increase in new residential and commercial construction activity over 2011.

Residential activity

Heath Clark, a partner with Bill Clark Homes, is not surprised at the sudden spike in new single-family home construction.

The custom homebuilder said his firm has 150 homes under construction across the Cape Fear region, with a majority being in New Hanover County. He said many potential buyers who were hesitant to act because of the lackluster economy are now taking advantage of low prices and builder deals.

“We’re seeing a lot of family buyers at the entry level,” Clark said. “Also, prices can’t go any lower, so I think you have a number of people that realize this, and are jumping into the market now to purchase their home because this is as low as it may get.”

Clark added that a number of his popular New Hanover County communities, such as Sycamore Grove and Porters Pointe, are beginning to reach capacity; a sign more buyers are confident about the economy. 

“Wilmington has been resilient in the housing industry,” Clark said “Despite the climate, people are still selling and buying houses here.”

Cress Bell, division manager for JordanBuilt Homes of Wilmington, agreed, adding it’s not just starter and mid-priced homes that are selling quickly in the region.

Bell, a California native who also specializes in custom homebuilding in some the region’s most exclusive and sought-after communities like Autumn Hall, Landfall and Brunswick Forest, said more than 14 of his “boutique custom homes” are under construction.

The builder’s boutique homes are highly customized residences ranging from $800,000 at Landfall to the mid-$450,000s at Autumn Hall. 

“I had three boutique homes sell before they were even constructed,” Bell said. “There is more construction activity, and we’re seeing more views of homes.”

The growth in new single-family permits is not only affecting builders. A number of mortgage lending firms have seen their paperwork increase tenfold since the start of the new year.

Melanie Orlando, president and owner of Envision Mortgage Corporation, said her firm is set to enjoy its best month ever. She added that her office is also expanding, and she plans to hire additional brokers in the coming months.

“It’s been noticeable,” Orlando said of the uptick in new mortgage inquires. “It’s all over the map. We’re seeing first-time homebuyers, a lot of refinancing on existing homes and second time homebuyers . . . activity has been very swift.”

Under the U.S. Housing Affordability Index, which measures whether or not a typical family could qualify for a mortgage loan on a typical home, any index above 100 signifies that an average family earning a median income of $61,000 has more than enough income to qualify for a mortgage loan on a median-priced home.

Not only did the index register over 200 nationally in February, it’s a whopping 213 in the South — meaning incomes are up regionally, and affording a home is within reach for many buyers.

“Buyers are taking advantage of record low interest rates and housing prices, even though getting a mortgage requires the buyer to show full documentation of assets, income and liabilities,” Orlando said. “While some buyers think they can’t meet these qualifications, a number of them are surprised at their buying power.”

Patrick Stoy, president and owner of Market Consulting Mortgages, is also reporting a similar increase in mortgage and refinance requests, adding that his firm is on track to celebrate its best two months since the downturn. 

“I had two different clients request a mortgage for the same property,” Stoy said. “We’ve seen a noticeable increase these last 10 days.”

Stoy said now is the time take advantage of the low interest rates, adding that since a number of banks passed their stress test — which determines their financial solvency during times of economic crisis — rates will begin to increase.

“We’ve seen this happen before,” Stoy said. “So I believe people are trying to get ahead of the trend before rates start going back up.”   

Commercial activity

Ken Dull, president and owner of McKinley Building Corp., said a number of the new commercial construction permits are associated with the pending tsunami of more than 2,000 new apartment units planned for the area.

“Multi-family is hot right now,” Dull said. “There is a demand for apartments right now, and that’s evident in what’s occurring in the market place.”

Dull’s firm has been quite busy in the Wilmington area.

McKinley Building Corp. was hired to complete construction on Carolina Cove, a 228-unit apartment complex set to rise along Randall Parkway in the coming months. The construction firm will also break ground on the 250-unit Cambridge Village senior living facility along Eastwood Road, and is ramping up work on the 18,500 square-foot Britton Shopping Center in Monkey Junction — which is 100 percent leased. Dull’s firm will also be responsible for a $1 million interior renovation of the Lowe’s Food store at Pine Grove Road and Greenville Loop.  

“It certainly isn’t at pre-2008 levels,” Dull said of current commercial activity. “The tea leaves look promising, but we’ll have to wait and see what it tastes like.” 

Meanwhile, Clancy & Theys is staying busy with a number of projects in Wilmington and throughout the state.

Robert S. Bridgers, director of Business Development for Clancy & Theys’ Wilmington division, said his crews are currently developing roadway and storm drainage infrastructure for Oleander Company’s Tiburon Park development. The construction firm is also constructing Live Oak Bank within the same development.

“There is definitely more energy out there,” Bridgers said. “And that’s something we haven’t seen in a while.”