DAPHNE, Ala. — The national housing decline become apparent locally Wednesday as two developers requested extensions from the Planning Commission at its site review.

Barry Booth, representing the Apalachee high-rise residential community, requested an extension of a site disturbance permit that was originally issued on March 21, 2007.

“We continue to monitor the real estate market,” Booth said. “But the demeanor of the economy does not warrant us moving forward at this time.”

The commission approved the Apalachee site plan on July 28, 2005 and accepted a revised plan on Aug. 28, 2006.

One-year extensions were granted on Jan. 24, 2008 and Jan. 22, 2009.

“We’re going to have two of these today and we’re going to have lots of them,” Commissioner Larry Chason said.

“So it’s best we help however we can in these hard times.”

Steve Pumphrey, representing Volkert and Associates, also requested an extension for approval of a preliminary plan for the Paradiso subdivision.

“It’s basically the same situation,” Pumphrey said. “When we started the project, it was at the the height of the market. We’re constantly watching (the market).” He said he expects development to resume next year.

Between 2000 and 2006, housing prices increased by 80 percent, according to the American Enterprise Institute for Public Policy Research. Home ownership rates also rose dramatically during this time period.

Record-low interest rates coupled with ever-loosening lending standards pushed real estate prices to record highs across most of the U.S.

Some lenders began letting clients borrow more than they could afford to pay back, using creative lending practices like teaser rates and “reverse” mortgages. Teaser rates were introduced in which homeowners would get an affordable rate for the first year or two and then their premiums would skyrocket. In a traditional mortgage, a homeowner makes a regular payment to a lender. However, in a “reverse” mortgage, a homeowner receives money from a lender. The loan is repaid when the homeowner dies, sells the home or when the home is no longer a primary residence.

Increased speculative activity created a housing bubble; too many subdivisions were being built without developers knowing if people would move in, leaving the market drowning in supply and devoid of demand.

A slumping national economy caused many businesses to cut costs, mainly payroll, as millions of Americans were laid off or saw their hours and benefits reduced. Many have been forced to foreclose on newly-acquired properties as well as multi-generational homes.

Other factors contributing to the housing recession include reckless lending practices such as expanded adjusted-rate mortgages and zero down-payment loans.

Commissioners also discussed:

The commission does not vote at its site review; its next business meeting is at 6 p.m. Dec. 17 in the council chambers at City Hall.