Colorado Springs-area homebuilders had another strong month in July, an indication that the local home construction industry is continuing its slow recovery from the downturn of the last five to six years.

In July, homebuilders in the Springs and El Paso County pulled 193 single-family building permits, a nearly 40 percent increase from the same month a year ago, according to a Pikes Peak Regional Building Department report released Wednesday.

Last month’s total also was the highest for any July in six years. Year-over-year permit numbers now have increased for seven straight months.

Through July of this year, single-family permits totaled 1,218, a 49.3 percent jump over the same period in 2011. This year’s seven-month total already has exceeded the number of permits pulled by builders in all of 2009 — a year when the pace of homebuilding slowed to a crawl.

John Cassiani, board president of the Housing and Building Association of Colorado Springs, said renewed homebuilding in the sprawling Banning Lewis Ranch on Colorado Springs’ east side has boosted construction activity. In May, Denver-based Oakwood Homes and a partner bought a 2,600-acre northern portion of the 21,000-acre ranch from KeyBank National Association of Ohio, which acquired that section of the ranch after the previous owners of the ranch declared bankruptcy.

Homebuyers also are taking advantage of historically low mortgage rates, Cassiani said. And since prices have started to rise, many buyers are purchasing now before costs go any higher, he said.

Builders and individuals pull permits in preparation for the start of construction, and the number of permits is a measure of the health of the homebuilding industry — a key component of the Pikes Peak region’s economy. Homebuilders and their subcontractors employ thousands of people, while sales tax revenues collected on the purchase of building materials generate millions each year that local governments use to pay for basic services.

The housing news last month wasn’t as good when it came to foreclosure activity.Foreclosure filings — the start of the legal process that can lead to the loss of a home — totaled 328 in July, an almost 38 percent increase from the same time last year, an El Paso County Public Trustee’s Office report shows.

For the first seven months of the year, foreclosure filings totaled 2,105, a 6.3 percent increase over the same period in 2011.

The uptick in filings might have resulted from a last wave of homeowners with adjustable rate or other non-traditional mortgages that they had taken out years ago, El Paso County Public Trustee Tom Mowle said in his monthly report.

The interest rate on such loans might have increased or homeowners might have been required to make large, balloon payments as part of their loan — leading to their property falling into foreclosure, he said.

As a result of the recent increase in foreclosure activity, Mowle now estimates that filings for the year will total about 3,350, up from his original forecast of 3,000. Still, both figures would represent a decline from the 3,603 filings in 2011.—Contact Rich Laden: 636-0228 Twitter @richladenFacebook Rich Laden