Wednesday, November 19, 2008

New Construction Housing Starts in October: Lowest Level Since 1959

Nationwide housing starts fell to their lowest since the US Census Bureau began tracking the numbers in 1959.

There's a nationwide overhang of inventory. In the Charlottesville area, the number of new and existing unsold houses is at a 15 month inventory level (or higher)--meaning it would take this long to sell off all of the properties.

This doesn't include unfinished new houses and condominiums. Just driving around town, you see these projects that don't yet have buyers: Condos behind Hollymead Town Center, Belvedere on Rio Road, The Gleason downtown. These units will just add to the local glut.

The area doesn't need any more new construction, but the builders need to keep building because otherwise the loans, which were financed before the collapse of the economy, disappear.

But selling these? That's another story.

Read about the low level of new housing starts.

1 comment:

Anonymous said...

I don't get "The Gleason." Not a nice view looking down. Did nobody consider this?