Experts: North Georgia housing market in depression

via the Atlanta Journal-Constitution:



Experts: North Georgia housing market in depression
Banks starting to turn against builders, lawmakers told at hearing

By KEVIN DUFFY
The Atlanta Journal-Constitution

Thursday, December 11, 2008


The housing market is so bad that some banks and builders that had been business partners are now adversaries, and experts are using the dreaded “D” word.

“In northeast Georgia we’re not in a housing recession, we’re in a housing depression,” Jim Williams, president of Southern Highlands Mortgage in Blairsville, told state lawmakers at a daylong hearing Wednesday. “The retiree market, the secondary market has all but dried up. There are no homes being built.”

Likewise, Eugene James, head of the Atlanta division of the research company Metrostudy, said the 22 metro counties it covers “are in a housing depression right now.”

James said sales closings were down 44 percent for the third quarter, compared to the same period last year, and housing starts had plunged 67 percent. The metro area also has about 148,000 lots with infrastructure but no homes — a 117-month supply, he said.

Legislators are trying to figure out what they can do to encourage home buying and rescue residential builders. The General Assembly convenes next month, and new bills might be introduced calling for tax incentives, expanded down payment assistance or reductions in home building regulations.

“A down payment assistance obviously would be very, very beneficial to citizens,” Lt. Gov. Casey Cagle said after speaking to the joint economic development committee. .......(more)

The complete piece is at: http://www.ajc.com/search/content/business/stories/2008/12/11/georgia_housing_market.html

... because they're in fucking GEORGIA.

Annoying political issues aside, we've been blessed with finding a county whose school system has performed wonderfully for our special needs child. We even managed to find an area here that isn't wildly over-developed and has everything we need within a one mile radius. It's not very public transportation or pedestrian friendly (the biggest drawbacks IMO), but I rarely have to fill my car's gas tank more often than once a month.

But it is sad to see how the real estate market has suffered here. We've been lucky, in that our neighborhood hasn't lost value despite a few foreclosures. But the few newer developments in our area have not fared well at all. The builder of one particular neighborhood that's only about two years old has slashed his formerly priced at $280K (starting sell price) down to $220K, and they are still not selling. They're very nice houses, but I prefer our smaller 1500 sq. ft. ranch (or, as refer to it, "Our Home of Perpetual Renovation")....

using houses as places to keep the rain off your heads, the cold out of your bones & a place to keep your "stuff"...Not as a chi-chi "investment" to be flipped every few years so you can buy a shinier, bigger, fluffier one..

Modern people forget that once, families of 5 kids & 2 parents, managed just fine in a <1000 sq ft crackerbox.. they did not have 5 ft plasmas, imported granite countertops, sunken Roman tubs, Jaccuzzis adjoining all 6 bedrooms, or 6 bathrooms for 6 bedrooms & 2 for guests... they did not have 3 car garages, 3 decks, 4 balconies..and designer upgrades as far as the eye could see,,

They were SHELTER..

but then I have nothing to forget. I don't know why it is assumed that all Americans have been afforded the luxury of living the 'American dream', buying anything they want when they want. I can admit to being wasteful..buying junk and tossing it a few years later when it doesn't work. But neither I, nor anyone I know, lives in one of the houses you describe, or ever has.

and since the '80s, it's been the Holy Grail of would-be buyers, and the industry as a whole.. Every time we have bought a house, we set a MAXIMUM..and refused to even look at houses we could not afford..and every realtor we dealt with was kind of irritated at us, and happy to get rid of us, so they could concentrate on selling a bigger-commission home to someone else..

I trace it back to the era of the TV-rich people shows ..like Dallas, Falcon Crest, Dynasty.. Before the late 70's & the 80's, most people seen on TV had apartments or quite modest accomodations...

We moved here in 2000, and since then, there have been hundreds of housing developments built within 5 miles of our house. Some of the earlier ones are, or at least were, all sold, but MANY built in the last 2 or so years have more than 1/2 of the completed homes not sold.

I don't want to beat up on the builders, but until the existing NEW homes are sold, I sure can't imagin building more just to add to the inventory!

I'd love to contact some realtors to see just how many homes they've sold in the last year...or worse...the last 6 months. I haven't done it because I think they'd view that as harrassment and I don't want to do that.

People are afraid of losing their job or having to face cut backs, and even IF they could a mortgage, they're afraid to take the risk.

You bought it...it's Yours, Pal.