Going from a boom to a crawl, proposals for new subdivisions are slowing in neighboring counties this year, as are lot sales and new home construction.

But houses are still moving in certain price categories.

"Activity in the subdivision business just isn't there," said Broadwater County Planning Board Chairman Brad Campbell.

"(Submittals) are significantly down -- 2007 to 2008 is substantially down; 2005 to 2006 business was booming."

Broadwater County has eight subdivision submittals for preliminary plat approval so far this year. Last year there was a total of 22 preliminary plats, and 19 the year before.

"Now we have a chance to catch our breath, but no money," Campbell said.

Broadwater County contracts for planning services with WWC Engineering of Helena, relying on funds from subdivision submittal fees.

What troubles Campbell is that some good developers who went the extra mile to do quality developments are taking a financial hit.

The market is drying up and at the same time the developer's taxes will skyrocket.

"I worked very hard to show what a true developer could do," said John McDonnell, developer of The Village at Elk Ridge, formerly Price Hills.

"Broadwater County has been burned by developers promising things and not carrying through," he said.

"He has done just a bang-up job," said Broadwater County Planner Shawn Higley. "I can't say enough good things about what he's done. He's put in a whole sports complex -- basketball court, softball complex with bleachers, soccer field and a park play area."

McDonnell also planted more than 250 aspen trees.

Despite the beautiful facilities and seven miles of paved roads in the development, McDonnell has sold only two lots -- 259 remain.

Located off Price Road north of Three Forks in southern Broadwater County, the development received final plat approval late last summer, just in time for the current slump.

"If it was three years ago, I'd be sold out," McDonnell said.

He expects his property taxes to spiral from $1,600 -- the rate for agricultural land -- to $225,000 because of the improvements.

"It will put me out of business," he said.

He is working with the state to see if something can be done about the taxes.

"The state is more than willing to work with me," he said.

The Gallatin Association of Realtors reports nine lots have sold so far this year in that area of Broadwater County. A total of 34 lots sold last year, and 69 the year before.

The subdivision slows also have struck in Jefferson County.

Two years ago, the Jefferson County Planning Department "was knee deep in subdivisions," said Assistant Jefferson County Planner Michael Hoffman.

Not so this year.

"It was a slow spring," he said. Some planning board meetings were cancelled for lack of subdivisions to review.

Jefferson County doesn't track the number of new subdivision submittals from year to year, just the number of lots receiving final plat approval.

Many of the subdivisions that will be approved this year were already in the pipeline.

"You won't see the current slowdown until 2009," he said. "Everyone is asking for an extension."

Developers are reluctant to put in subdivision improvements before they have sale agreements in hand.

"They are not seeing demand for lots," Hoffman said.

It's making him and the county commission nervous. The developers bonded for making improvements, meaning the county is holding letters of credit from banks. If the improvements aren't done, the county might have to step in and do them.

"Down the road, we could get stuck with one of these," he said. So far, the county hasn't run into this problem. If it did, it would be a lot of extra work for the county to oversee the improvements.

"Things have definitely slowed down," said Dustin Fraker, a Bozeman chiropractor who built a 15-lot development south of Whitehall.

"We sold 75 percent of our lots, but most of our sales came one-and-a-half years ago. Sales are on the slow end."

One house is being built, he said.

"Some of the people who bought lots were speculating. One person was going to build three spec homes."

The spec homes aren't being built.

"I'm not too worried," he said. "I would be if I hadn't sold any of them. If I'd developed a year ago and was just starting to fill it right now, I'd be awfully fearful."

Meanwhile developer and Realtor Gina Ossello, out of Butte and Whitehall, said she's had some interest in the subdivision she developed, Jefferson Acres, south of Whitehall.

"It's riskier this year," she admitted. "You're taking a risk anyway because you have all that money out there."

If she'd gotten final plat approval a year or more ago, she's convinced sales would have taken off.

But there is good news, Ossello said, certain parts of the housing market are doing well.

A Montana dream home on Upper Rader Creek sold quickly for $385,000, as did another house on a creek, she said.

Houses at $120,000 or below that are cute and don't need a lot of fixing sell well, too.

But properties priced at $250,000 to $265,000 are moving slowly.

So far this year, 24 houses, ranging from $25,000 to $725,000, sold in the Whitehall area.

"This isn't too bad for that area, it's a little lower and a little slower," Ossello said.

The same seems true for the Broadwater and Jefferson County housing market.

So far this year, 28 homes have sold in a region encompassing northern Jefferson County. Last year a total of 81 homes sold in this area.

In the sales area that encompasses the Winston, Townsend and Toston area, 29 houses have sold so far. Last year's total sales were 75.

Twelve lots have sold in the northern Jefferson County sales area so far this year. Last year's total was 21, and 44 lots sold the year before.

For the northern Broadwater County sales region, 14 lots have sold so far, compared to a total of 106 lots sold last year.

Realtor Drew Ahmann, the immediate past president of the Helena Association of Realtors, suspects the local slump could be an unnecessary case of the jitters.

The mortgage crisis and national news about foreclosures may have shaken the confidence of local consumers, he said.

"There's no reason for the Helena area to be in a housing slump," Ahmann said. Interest rates are at an historic low, the local and state economy are solid and there's low unemployment.

"People are a bit wary," he said. "Right now buyers have an advantage" because there's a lot on the market.

"What we're seeing is that the spec building has slowed significantly. Builders were building spec houses, but they're getting rid of their inventory."

While local builders report they have steady work, building starts are down slightly in Jefferson County, according to figures from the Montana Building Industry Association. It reports 43 housing starts by the end of June last year in Jefferson County, and 38 for the same time period this year, or about a 12 percent drop. Broadwater County figures show a steeper decline, with 55 housing starts in the first half of last year, compared to 31 this year, for a 44 percent drop.

Alan Arnold, a builder in Jefferson County, said he is building his normal number of homes -- three to four -- but the development boom "is definitely slowing down."

"We're cutting down and not doing spec houses. But for quality houses and custom-built houses, it's more of a normal year than a booming year."

A major factor, he said, is that high gas prices are driving up the cost of steel, concrete and plumbing fixtures.

"Everything would be a lot lower if gas prices were down," Arnold said.

Vince Vogl of Vogl General Construction in Townsend said business "is about the same this year."

"It hasn't slowed down a bit," he said.

During a typical year, he builds 12 to 14 houses. This year, he's building seven houses, as well as some commercial work. He's turned down work -- passing houses on to other builders.

Septic permit statistics from county sanitarians are in sync with what local builders report. The permits are often used as an indicator of home building activity in rural counties that don't require building permits.

Broadwater County reports that permits may be down a bit, but not tremendously. Last year, a total of 133 permits were issued. So far this year, there's been 60.

Jefferson County permits for fiscal year 2007-08 are actually up compared to the previous year, 112 compared to 92.

Reporter Marga Lincoln: 447-4074 or marga.lincoln@helenair.com

Sales of single family homes, for the area south of Helena -- includes Northern Jefferson County and Unionville

2008, year-to-date sales: 28 (active listings 86), price range of those sold: $130,000 to $605,000; median price: $277,500

2007: 81 sold; range $65,000 to $775,000; median price: $293,000

2006: 89 sold; range $71,500 to $582,500; median price: $249,900

2005: 95 sold; range $33,500 to $1,2 million; median price: $225,000

Lots sold for the area south of Helena -- includes northern Jefferson County and Unionville

2008, year to date sales: 12 (active listing 146), price ranges of those sold: $35,000 to $315,225; median price $105,000

2007: 21 sold; range $32,175 to $674,000; median price $105,900

2006: 44 sold; range $45,000 to $329,900; median price $87,500

2005: 68 sold; range $20,000 to $130,000; median price $68,950

Sales of single family homes, for area southeast/northeast of Helena, includes primarily Townsend, Winston, Toston, but also Wolf Creek and Craig

2008, year-to-date sales: 29 (active listings 118), price range of those sold: $60,000 to $1.1 million; median price: $189,500

2007: 75 sold; range $15,000 to $650,000; median price: $169,900

2006: 99 sold; range $20,000 to $800,000; median price: $161,500

2005: 82 sold; range $35,000 to $1.25 million; median price: $43,500

Lots sold for area southeast/northeast of Helena, includes primarily Townsend, Winston, Toston, but also Wolf Creek and Craig

2008, year-to-date sales: 14 (active listings 394), price range of those sold: $17,500 to $140,000; median price: $40,000

2007: 106 sold; range $11,000 to $3.78 million; median price: $55,000

2006: 113 sold; range $9,250 to $400,000; median price: $38,000

2005: 124 sold; range $5,000 to $256,740; median price: $30,750

SOURCE: Helena Multiple Listing Service (*these figures reflect sales through Realtors; they do not include sales by owners)