ATLANTA HOUSING STARTS ARE DOWN 70 PERCENT YEAR OVER YEAR
The Atlanta Journal and Constitution reported Atlanta permits for new housing are down, way down. New construction permits dropped 22 % between May and June of 2009. But the most encouraging news was permits dropped 70 percent when comparing May 2009 to May 2008.
GREAT NEWS FOR ATLANTA REAL ESTATE MARKET
Homebuilders have essentially halted construction of new homes in Atlanta. This construction slow down will allow the existing inventory to be absorbed by the market. Getting excess inventory off the market is only way the housing market can recover. Cutting off the creation of new homes means less competition for the vacant new homes already on the market.
JOBS WILL RETURN WHEN EXCESS INVENTORY TAKEN DOWN
Once the present over supply of homes is absorbed by the market, builders will jump back in and construct new homes for the marketplace. Let's hope they move away from the speculative model where homes are constructed before the buyers come along. In other parts of the country it is more the norm to have a buyer "contract" for construction of a new home before it is built. At any rate, a return to a more sensible method of homebuilding will once again create jobs in the Atlanta market. More jobs means more potenital home buyers...and so it goes.
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