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Dave Errington handed out building permits for five new houses in Mexico last year, not much by big city standards, but locally, a construction boom.

“Prior years you’d be lucky to get one,” said Errington, the town code enforcement officer.

It was that sort of market in 2003.

Building permits were up in Turner, Paris, Farmington and Lewiston. Real estate agents counted a record 19 percent sales increase to close out the year in December.

And modular home sales were up statewide between 20 and 40 percent.

“I see it slowing down as the interest rate goes down,” said Roger Williams. Turner’s code enforcement officer, he was on his way Friday to inspect a $500,000 house under construction.

Lewiston issued permits for 72 single-family homes in 2003, up from 56 the year before. Farmington had 12, up from 8. Bethel had 51, up from 37.

“Most of the increase in housing we’ve had is of the second home, vacation home variety,” said Bethel Code Enforcement Officer Rich St. John.

Modular homes had a big year in 2003. According to state records, sales were up 20 percent, but Bob LeClair, executive director of the Manufactured Housing Board, said reporting those numbers has been an issue.

The year-end tally of 1,247 could actually be up to 400 homes higher. Half of those are coming in from Canada, LeClair said. The other half are from other states and Maine.

He’s spoken with builders who say they got caught up in a spring rush last year. “This winter they’re building a lot more homes to have in inventory,” he said, basic capes, colonials and ranches.

LeClair believes the end of 2004 will top the end of 2003.

“It’s been a marvelous couple of years,” said Sheryl Gregory, past president of the Maine Association of Realtors and a broker at Homestead Realty in Winthrop.

By the end of the year 13,246 homes had changed hands, according to the Maine Real Estate Information System. Year over year, December sales were up 19 percent, or 184 homes.

The weather wasn’t bad, the interest rates were great, “people were just in a buying mood,” said Gregory.

“Maine real estate is one of the industries keeping Maine going right now,” she added. So many people get pulled into each sale: the oil dealer to check the furnace, maybe add fuel, local retailers when people replace carpet, paint or buy new washers and dryers.

“If you’re buying or selling things get fixed,” Gregory said.

Fewer people took part in Maine State Housing Authority’s first-time home buyer programs in 2003, said spokesman Dan Simpson. The rates were so good people didn’t bother with the program, he said.

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