5:59 am July 28, 2009, by Henry Unger
When you’re talking about the economy, sometimes bad news in the short-term can be good news over the long-term.
The Census Bureau reported fewer building permits for new construction were issued in metro Atlanta in June, compared to May and the same period last year.
But that could help our housing market, writes AJC reporter Michelle Shaw. The slowdown is a critical step to clearing out the oversaturated supply of homes, Eugene James, division director for MetroStudy in Atlanta, told Shaw.
“It’s not good for the job market because it impacts construction jobs, but it really is good for the region, in terms of reducing inventory,” he said. “We’ve got to get rid of what we have before we start building more.”
The tremendous inventory of unsold homes and condos has been dragging down our market for two years now.
Nationally, new home sales are up a surprising 11 percent over May. Local analysts, including James, expect Atlanta’s numbers to show the same trend when they’re released next month.
The rise in the national figure is the strongest sales pace since November 2008 and exceeded the forecasts of economists. The last time sales rose so much was in December 2000.
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