SALEM — There's something unusual about the foundation hole being dug at the corner of Washington and New Derby streets. Maybe it's the fact there is so little other visible construction taking place in a downtown that, just a few years ago, had a skyline dotted with construction cranes.

The downtown housing boom seems suddenly quiet.

The luxury condominium project at the former Dave & Jack's gas station on Derby Street has been killed. The barren lot is surrounded by a construction fence.

The mega-project at the former St. Joseph Church site on Lafayette Street, which was slowed by the battle over a senior center, is still facing court appeals.

Two projects along the North River canal, just outside downtown, are also in limbo. The proposed apartment complex at the Salem Suede factory site, which is before city boards right now, is also under appeal in state Land Court. And the proposed condo building at 28 Goodhue St., another former factory site, is on hold waiting for financing.

"It is a fully permitted project that is not yet fully financed," attorney Joseph Correnti said of the Goodhue Street development. "That is the only issue preventing it from being built." Last week, Correnti went before city boards asking for an extension.

Financing is an issue almost everywhere due to the subprime lending crisis that has slowed housing starts around the country. It is also taking its toll here — on both developers and homebuyers.

The Palmer Cove Condominiums on Palmer Street have drawn a lot of attention, but only two reservations — and no buyers. This is an affordable housing project by the Salem Harbor Community Development Corp., a nonprofit, and it targets first-time homebuyers and working families. It is an attempt to increase home ownership in The Point, a neighborhood on the edge of the downtown made up predominantly of renters.

The condos went on sale just weeks ago, but, even so, progress has been slow. And the economy appears to be the culprit.

"It has made it more difficult because the buyers are having a hard time getting approved for their loans," said Nina Cohen, the project manager.

The Old Salem Jail on St. Peter Street, a showcase historic redevelopment that was supposed to be under construction by now, has been given several extensions by the Salem Redevelopment Authority. Again, the issue is financing. The logjam was broken recently when the developer, New Boston Ventures of Boston, turned to historic tax credits as a financing tool for the nearly 200-year-old site. Now, they hope to start construction in the late spring.

"They are moving that project very creatively," said Lynn Duncan, the city planner.

To secure those tax credits, the developers had to pledge that 22 of the 36 residences will be rented for five years as apartments rather than sold as condominiums.

Switching from condos to apartments is another trend driven by the economy.

The condo glut in the city — there are 202 for sale as of this week — changed the thinking on several downtown projects. Instead of marketing the $10 million project at the former Salem Evening News site as condos, Somerville developer RCG plans to rent it as apartments.

RCG, which has a major stake in the downtown, is one developer, though, that seems to be plowing straight ahead despite the economy.

"Well, hopefully, it's not because we're crazy," RCG principal Matt Picarsic said with a laugh. "We think (the Salem News site) is a prime location, and we're optimistic it's going to be well-received by the market when it's done."

Picarsic acknowledges, however, that there is an element of risk in any housing development — more so during an economic downturn.

"I think that's why you see a lot of people nervous about starting a new project. ... We're nervous about the economy just like anybody else is, but we do think Salem continues to be a great place to live, work and visit, and by strengthening that corner it's only going to help that."

Theirs is not the only project moving ahead in these tough times.

Developer Jeff Holloran started construction last summer on Latitude, the condo conversion of the former C.F. Tompkins Furniture Co. building on Essex Street. He is almost done and has sold more than half of the 20 condos — despite having no on-site parking. The condos range from the high $100,000s to the low $300,000s.

"They're priced right," he said. "That's the key."

City officials acknowledge that some projects that were supposed to be under construction by now are not. But they point to the positive — those projects are still alive and kicking.

"There are definitely projects that are moving forward," said Duncan, the city planner. "They may be moving forward slightly slower, but they are still moving forward."

Downtown Salem housing

Project Details Date announced Status

Harborview Place 38 condos 2004 Canceled

289 Derby St.

Latitude 20 condos/retail 2007 Complete

281 Essex St. (C.F. Tompkins)

North River Condominiums 44 condos/retail 2004 Awaiting financing

28 Goodhue St.

Old Salem Jail 36 condos/apartments/retail 2005 Spring start?

Palmer Cove 15 condos 2005 Complete

50 Palmer St.

Riverview Place 130 apartments 2007 City review/court appeal

72 Flint St. (Salem Suede)

Salem News 31 apartments/retail 2007 Under construction

Salem Waterfront Hotel Expansion/condos 2007 Plans not filed

St. Joseph Church 67 condos/apartments 2006 Court appeals