New houses are going up in and around Muskogee as construction picks up after a year-long slump.

Muskogee developer Adam Lambert said he is planning a new 240-acre development, Quail Creek, south of the Muskogee city limits. Two spec houses already are nearing completion on South Gulick Street between Smith Ferry and Davis Field roads, he said. Spec houses are built to sell.

“These are a lot more affordable new homes in the Hilldale School District,” he said, citing a price of around $145,000 for a 1,750-square-foot house. “We felt there is a need for this size house because of an influx of new houses in the Hilldale.”

City of Muskogee residential building inspector Dan Hurd said the city has handled nine residential building permits in the past three months, compared with two for the same three months in 2008. The increase comes after a slow first half for 2009, Hurd said.

“On the average, we have about 40 new house permits each year,” he said. “This year, we may end up with 28 or 32.”

He said that while he cannot specify which ones are spec homes and which are custom builds, “but they appear to be 50-50.”

Lambert said his homes will range from 1,500 to 2,000 square feet, just the right size for young families.

“Grandview is aging, so we need homes for middle-income families,” he said, referring to housing additions around Hilldale Schools.

Lambert said he plans to build both custom and spec homes on one-acre lots. He said he is not worried about the housing market.

“We’re not doing great,” he said. “We’re not seeing a recession, but there is not an influx of buyers now.”

Lambert said mid-range houses seem to be more in demand than upper-end houses.

Louie Slape, owner of Louie Slape Construction said housing had been in a slump this year. Still, he said he feels pretty good about the market. He said he is building some homes in Grandview VII and the Honor Heights area.

An $8,000 tax incentive for home buyers and low interest rates make the timing good for a new house.

“People wanting to build or buy a house can expect to see interest rates higher this time next year,” Slape said. “Now is the time to do it.”