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GREENSBORO — Pierce Homes, a longtime home builder in the area, will soon close, a casualty of the slowing economy.

“This difficult decision comes as a direct result of the ongoing crisis in the housing and financial industries,” a statement from the company said. “The management would like to express our sincere thanks to our dedicated employees, our vendors, and the thousands who have trusted our company to build their homes in the Triad.”

Citing the process to liquidate assets with banks and attorneys, the statement said company officials would not comment further.

The closing comes at a time when new residential construction in Greensboro has slowed drastically. The number of single-family-residence building permits issued by the city through the end of July — 338 — is half the number of the 656 issued for the same time last year.

“Certainly sales are not what they were 18 months ago to 2 years ago,” said Billy Tesh, president of the Greensboro Builders Association.

Building permits on new single-family homes peaked in 2005 when 824 permits were issued. The number has declined every year since.

Tesh said some builders are sitting on unsold inventory, a scenario that can strain balance sheets.

“In most cases, a builder borrows a certain percentage of the construction of the house including the land value,” he said. “They’re anticipating a turnaround on the sale of that property within six months of the completion of the property.”

Sometimes, a builder may have a contract on a home before the structure is even completed. At least, that was the case in rosier times. Not so much now.

“Unfortunately, it was a bit of a trend where builders were still building at the same pace and purchasers were not purchasing at the same rate,” Tesh said.

“Some of it is just plain economics that occur. When you have builders that are building a lot of houses, they have more on the line with the banks. And banks have been a little less friendly with everybody.”

Pierce Homes is at least the second longtime area home builder to fold this summer. Sandra Anderson Construction, owned by City Councilwoman Sandra Anderson Groat, is also in the process of closing. Both businesses had been in operation for more than 20 years.

Contact Lanita Withers at 373-7071 or lanita.withers@news-record.com