The housing market in Denton County appears to be holding its own despite the continued increase in residential foreclosure postings.

“Denton County is pretty hot right now,” said Stacy Curtis of Curtis Mort­gage in Denton. “July is the biggest month we’ve had in 2 1/2 years, and August is looking like it will follow suit. People are still buying houses.”

A total of 507 foreclosures, an increase of 40 percent from a year ago, were posted for the Aug. 5 auction, according to the Foreclosure Listing Service Inc. monthly report released Thursday.

The overall market across the Dal­las-Fort Worth region also is healthy, said George Roddy Sr., president of the Addison-based Foreclosure Listing Service.

“All in all, the market itself is performing rather well,” Roddy said. “Denton County is actually in the path of growth and is going to continue to be in the path of growth.”

Neighboring Collin County continues to rank high among 10 Dallas-Fort Worth area counties with a 42 percent hike in residential postings from 404 in August 2007 to 573 for the upcoming auction.

Two nearby counties, Parker and Kaufman, had the highest increases at 50 percent and 52 percent, respectively, according to the report.

For the year, Denton County has 3,675 residential foreclosure postings, up 38 percent from the 2,671 counted as of the same time last year. Of the 10 neighboring counties, only one shows a higher year-to-date percentage increase over last year’s numbers — Kaufman, with a 46 percent jump from 471 year-to-date residential foreclosure postings in 2007 and the 689 posted so far this year.

While foreclosures listed for the July auction were up 59 percent compared to the same time last year, the number of residential postings at 384 was the lowest in nine consecutive months for Denton County, according to Foreclosure List­ing Service. In May, a total of 437 homes were listed for foreclosure sale.

Homebuilders’ business outlook dropped this month to the lowest level in more than 20 years, according to a report released Wednesday by the National Association of Home­builders/Wells Fargo Housing Market Index. The housing market index fell in July to a record low of 16, down from 18 in June. The index has been on a downward trajectory since May as the industry’s fortunes have soured, according to The Asso­ciated Press.

But, locally at least, the real estate industry is still abuzz with activity.

“Texas is one of the best economies still,” Curtis said. “Denton County, in particular, is one of the best. ... We couldn’t be in a better spot.”

Staff writer Lori Forgay contributed to this report.

DAWN COBB can be reached at 940-566-6879. Her e-mail address is dcobb@dentonrc.com .