New Construction Defying The Market?
There is still concern and doubt about our housing recover here in Metro Atlanta but are home builders defying the market in Cumming or do they know something that many home buyers still seem to ignore? Certainly a great number of first-time home buyers have deemed the tax credit enough incentive to purchase a home and if that credit is extended & expanded many more will do the same. But a large number of buyers are still waiting on the sidelines looking for that elusive “great deal” that may not appear.
Through August of this year over 500 building permits have been issued in Forsyth County, compared to 210 in Gwinnett and 111 in Hall County. Builders are snatching developed lots out of foreclosure at substantial discounts and putting up a number of spec homes. But here is the kicker….they’re selling them at a pretty good clip too! As of right now in Forsyth County there are 376 new homes available for sale, another 81 under contract and 551 sold over the past 12 months. That is an absorbtion rate of just over 7 months with is really very good.
National builders like Pulte are building in the mid to high $200’s at The Estates at Old Atlanta. Local builders like The Knight Group are finishing out Union Station where all their current inventory under contract, I think there are only 4 more lots available. Traton Homes has purchased lots in Fieldstone Preserve and is now building in the $300’s where the homes previously sold in the $700’s.
What this shows is a demand for new homes that rival the buyer demand for foreclosure deals. I guarantee we will see more of this next year, for three main reasons. Banks are anxious to get these lots off there books and many buyers don’t want to deal with repairs & the difficult process and red tape that short sales and foreclosures come with. And finally, Forsyth County and North Atlanta in general still have great demand from both local and relocation buyers.
North Atlanta provides great schools, easy access commutes and plenty of options for dining and entertainment.
