Metro Atlanta Housing Market Looking Promising For Buyers

For potential home buyers in the metro Atlanta housing market, now is the time to buy, according to the Home Builders Association of Midwest Georgia, which just released its 2007 Economic and Housing Forecast.

Bob Chapin, senior vice president for SunTrust Mortgage in Atlanta, gave this evaluation to builders, Realtors and other industry professionals from the Atlanta metro area at a Thursday conference.

“We are not in a bubble market like some other parts of the nation,” said Chapin. “Local mortgage rates are near historical lows, and household formation and job growth projections are solid for Atlanta.”

Chapin provided information about the metro Atlanta housing market, noting that “seven of the top 10 subdivisions are south of I-20″ -among the top 10 communities ranked by sales, Coweta County’s SummerGrove community located on Lower Fayetteville Road in Newnan ranks fourth.

In neighboring Fayette County, reference was made to growing frustration among builders, who are having big problems moving inventory despite low Georgia mortgage costs.

“If you’re building in Fayette County, you know the unique building permitting process that is going on,” said Home Builders Association of Midwest Georgia president Mike Daughtry.

Others say it’s not time to sound the alarm.

“Don’t panic yet. We are still working through this process. Commissioners are learning the other side of the story,” said Bob Barnard, past-president of the Home Builders of Georgia. “I expect there will be relief by the end of the month.”

For 2007, Chapin said the Atlanta housing market “will continue to cool off after several years of overheating, while the overall economy should stay healthy.”

Existing home sales will contine their decline in 2007, and a lack of affordable housing continues to affect the housing market, being at its lowest since the 1980s. A housing recovery is expected to begin in late 2007 and early 2008, experts feel.

He noted that industry professionals will find that second mortgage demand will bounce back, as will second home sales as baby boomers near retirement age and relocate to the region.

Chapin said that builders nationwide are experiencing continued pressure on margins and are cutting home prices or offering buyer incentives to quickly move inventory. The primary issue is the quantity of lots on the ground.

In terms of the Atlanta commercial real estate market, there is a decrease in vacancy rates for office space. Industrial properties are experiencing increased vacancy rates.

Both are undergoing new housing starts and pre-leasing. For retail, consumer spending is slowing and there are increased vacancy rates, said Chapin.

SOURCE: The Times-Leader