Tuesday, March 17, 2009

Construction Down in Albemarle: "This is considered 'news'? Seriously?"

The title of this post combines both a headline from the 3/16 DP and the only comment that appeared after the article.

The facts:
  • Residential construction permits dipped to their lowest levels of the decade in 2008.
  • 403 building permits were issued for 418 residential dwelling units in 2008.
  • 741 building permits for 831 dwelling units were issued in 2007.
  • That's a YOY decrease of 45% for building permits.
  • There were no permits issued in the county last year to convert apartments into condominiums.
  • For fiscal 2008, the county brought in $262,000 in cash proffers for rezoning permits, compared with nearly $2 million in 2007.
Executive VP of the Blue Ridge Homebuilders Assoc., Jay Willer, says he's not surprised. Builders "don’t want to add to their own inventory while they still have houses that need to be sold."

He also added, “This is a wonderful time to buy a house. There are great houses out there, well-priced. Interest rates are kind of interest-rates-of-a-lifetime.”

Hmmmm....Are there going to be even more "well-priced" houses around the middle of the summer as sales sag because buyers expect pricing to become more "realistic"?

Supply is still too high in this area for the low demand. Even with low interest rates, and an $8000 tax credit, there's just too much inventory.

The DP article doesn't mention the numbers of local builders going under, facing mass foreclosures, putting projects on hold, and/or trying to sell off their properties. Why would it? This isn't new "news,"; it would just be a "reminder."

Meanwhile, in national news, the housing-obsessed reader may have seen this headline: "US Housing Starts Rebound in February." "Um, no," The Big Picture's Barry Ritholtz points out.

Current Number of Properties Available*:
Active Listings: 3450
Sold this month: 47
Median Price: $247K
DOM: 134

*Does not include REO, foreclosure auctions, and FSBO

Past 7 Days, number of properties that have come on the MLS:
Charlottesville: 21
Albemarle: 64
Fluvanna: 13
Greene: 9
Louisa: 11

Related Reading:
Construction Down in Albemarle -
DP
Waterhouse "Scaled back" - Cville Weekly
Foreclosure Auction: 4886 Dick Woods Road
Biscuit Run "On Hold"
Hauser Homes Seeking to Sell Belvedere Stake
Median Home Prices Cville, Alb, Elsewhere
Market Update: Feb Sales, March Inventory 2009

1 comment:

Jonathan said...

You're right, this isn't necessarily 'surprising' news. But it's stil news.

Wait until you hear the local real estate news that is going to come out early next week...