Yahoo News recently published an article titled “The Eight States Running Out of Homebuyers“. (I know, I said 10… they say 8, but they mentioned that Colorado and South Carolina barely missed inclusion).
Georgia ranked #6…
I’ll cut to the chase and give you the list. Check out the article for the details on each state…
- Michigan
- Nevada
- Arizona
- California
- Illinois
- Georgia
- Oregon
- Florida
Georgia made it onto the list because of the following statistics…
- 2010 Foreclosures: 3.25% (6th Worst)
- Unemployment: 10% (9th Worst)
- Decrease in Building Permits 2006-2010: -82.29% (2nd Worst)
Of course, I want to put my spin on these things…
There is no getting around the foreclosures. As a real estate agent, I see loads of them listed in the local MLS (Multiple Listing Service), as well as properties that are foreclosed, but not yet listed. I also see the properties that are on their way to foreclosure… short sales, neglected homes, etc. They are seriously impacting home values across the state.
Unemployment is the big one. As employment increases, pressure on the housing market decreases. Simply put, buyers are reluctant to buy when they aren’t feeling secure in their employment future. There are some rumblings that could bring an improvement to the employment rate… FedEx is building a new Distribution Center in Norcross (Gwinnett County) that will be bringing a good number of jobs to the area over the next 18 months (it is scheduled to open in Sept. 2012). While the 200 people that will work in the facility will be largely from other FedEx facilities, there will be jobs from the construction of the 215,000sf facility. There may be future jobs added as well. Kia Motors has a production facility in the state that is expanding. There are other companies, large and small, that are opening or expanding operations in Georgia, as well.
The decrease in building permits is another matter entirely. I see it as a backward looking indicator. I also see a decrease in construction starts as positive news for inventory already on the market. And in the last couple of years, we have seen the inventories decrease by half… If there is already an over-supply, more building won’t help that. And we have an oversupply.
The bottom line, for me, is that the article contains a mixed bag for Georgia. There is NO question that the market here has been damaged, but at the same time, there may be rays of hope hiding in the tunnel.
The Eight States Running Out of Homebuyers
