August 1st 2011 Market Summary

How’s the Biz?

As owner of Home ReBuilders and a realtor with Keller Williams, I am constantly asked; “how is the buisness?” – what they are really asking; “do I see improvement in the intown housing market, and is it a good time to remodel or build a home?”

The answer is YES.

Recently I participated in a conference call with David Crowe, chief economist with the National Association of Home Builders, as did a few local builders, bankers and realtors, and I would like to share the group’s insight on this topic. The Atlanta/Intown market place is definitely showing signs of improvement. Homes are selling quicker as indicated by the declining days on the market, while at the same time the velocity of the transaction is improving. The Case Shiller Housing Index for Atlanta actually rose for the month of April  http://www.standardandpoors.com/indices/sp-case-shiller-home-price-indices/en/us/?indexId=spusa-cashpidff–p-us—- indicating a slight rise in the price of homes. May’s index will be out shortly and we certainly hope to see this continue. What’s the forecast? No one is willing to place a good bet, but indications are a steady but a slower recovery than typical. Why? We have much to heal from, and with the additional government regulations, and sovereign issues overhanging the recovery, as well our own debt issues and political indifferences, it will simply take more time to heal. The good news is that in the face of these issues our economy continues to perform well and jobs are being created, while  companies are strengthening. I might add that we have heard a lot about the shadow inventory of foreclosed homes that might add to the supply side and glut the market, but keep in mind that there are close to 2m households in the US that have failed to form and buy houses, as they are on the sidelines, living at home and delaying their first home purchase. Thus, an offset demand. So is it a good time to renovate or build? Absolutely. In fact this is likely the sweet spot. The market place is firming up, and costs are down while mortgage rates remain extremely low. The price of lumber is down after a brief spike in mid 2010, and concrete has returned to its 2006 level after peaking in early 2009. These will pick up as demand returns as will labor, especially in Georgia due to our new immigration laws. I hope this helps to provide some insight into our improving marketplace, if you would like to dialog further you may contact us on our Facebook page.  Bill Bartlett, President, Home Rebuilders