Atlanta might seem like one of the weakest housing markets in the country, but a closer look reveals better things ahead for home builders, according to a new study, the Wall Street Journal reports.
Yes, in Atlanta home prices are down 26 percent from their peak, according to Standard & Poor’s for its S&P/Case-Shiller Home Price Indices. And, there are about 5,000 finished homes, or six months of supply, says Metrostudy, a national housing data and consulting firm.
But, inventories of finished vacant homes fell 36 percent in Atlanta last year, more than in any other major region tracked by Metrostudy. And, the private sector has added 35,000 jobs since hitting an employment low in January 2010, the WSJ reports.
In addition, Georgia’ population grew 20 percent from July 2000 to July 2010, twice the rate of other states in the U.S.
Another indicator that Georgia is a good bet, according to the report, is that just 8.6 percent of subprime mortgages in Georgia are in foreclosure, well below the 13.2 percent national average.
But even though things are looking up, credit is tight and it could take Georgia’s inventory of new homes to clear, the report states.