Senate and House Economic Development Committees Discuss Georgia’s Housing Market

ATLANTA – (December 10, 2008) Co-chairmen State Sen. Chip Pearson (R-Dawsonville) and Rep. Ron Stephens (R-Savannah) held a Joint Economic Development Committee meeting at the Capitol today to discuss the condition of Georgia’s housing industry. Committee members were joined by experts in the economic, building, and real estate industries to focus on how the market is affecting local industries and what can be done at the state level to ease the downturn.

“The housing market slump is a multi-faceted issue and declines in this industry are affecting peripheral industries such as banking, local jobs, automotives and retail,” said Sen. Pearson. “Now is the time to implement policies that will help us ride out these difficult times and provide solutions for the future.”

Georgia is home to some of the largest building and construction companies in the country, including Home Depot, John Wieland Homes, Beazer Homes and Georgia Pacific. Regionally, new homes sales in the South declined six percent in October, compared to 5.3 percent nationally. The western region saw a decline of 18 percent in new home sales. Both the Northeast and Midwest increased by 22.6 percent and six percent, respectively.

Georgia is steadily increasing in the number of foreclosures and late payments. Metro Atlanta trails the national average in home equity gain with a 1.9 percent increase over six years, compared to an 18.3 percent increase nationwide. The state also ranks third in delinquency payments.

In Georgia, 23 percent of homes are worth less than the mortgage payment. Despite these figures, builders are successfully reducing the number of unsold units on the market. According to the U.S. Department of Commerce, new homes sales dropped from 414,000 to 381,000 on a seasonally adjusted basis.

Committee members examined the housing market’s affect on local businesses, and heard economic impact presentations from Roger Tutterow, economics professor at Mercer University, and an economist from the National Association of Home Builders in Washington, D.C. The committee also heard presentations from several home builders, realtors and mortgage companies. U.S. Senator Johnny Isakson called in via teleconference to offer his take on Georgia’s situation.

Sen. Chip Pearson represents the 51st Senate District, which includes Dawson, Fannin, Gilmer, Lumpkin, Pickens and Union counties, and portions of Forsyth and White counties. He may be reached at 404.656.9921 or via e-mail at chip.pearson@senate.ga.gov.

PRESS RELEASE
For Immediate Release:
December 10, 2008
For Information Contact:
Raegan Weber,Director
Kallarin Richards, Senior Communications Specialist
kallarin.richards@senate.ga.gov
404.656.0028