Gwinnett county is leading the Metro
While the majority of counties in the state saw a large pullback in housing starts, the tap is turning on strong in Gwinnett. Leading by a large margin– starting 3147 units compared to the second highest of 2054 units in Cherokee county.
Courtesy of St. Bourke/Metrostudy.
A report in Atlanta Agent Magazine shows that out of 23 counties analyzed, 20 counties saw housing starts decline and 17 of them saw a decline in closings. This isn't a surprise as many builders pulled back after rate increases started in the middle of last year. This bearishness seems to be cooling off as home builder sentiment rose for the second month in a row. Hitting its highest level since September 2022.
A representative at the National Homebuilders association has the following outlook:
“Even as the Federal Reserve continues to tighten monetary policy conditions, forecasts indicate that the housing market has passed peak mortgage rates for this cycle,” Dietz said. “And while we expect ongoing volatility for mortgage rates and housing costs, the building market should be able to achieve stability in the coming months.”
My thoughts: Builders pulled back very aggressively following the rise in rates in Q2 of last year. They feared another doomsday coming for them, and in response they hit the E-brake. I think now they are seeing that things aren't as bad as anticipated, hence the two-month ease in negative sentiment. Builders coming back into the market is a good sign that a potential easing is within sight. Gwinnett seems to be on the leading end it. This all comes while Gwinnetts plethora of mixed-use developments are nearing completion (The Exchange, Solis Sugar Hill, & more). Will they lead development in 2023?
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