Building permits increase slightly

The Marietta Daily Journal

Home construction continues to lag behind previous years, but some in the industry say a glimmer of recent activity is a step in the positive direction.

In May, Cobb and its six cities issued a total of 39 building permits for new single-family homes. This is a 57 percent drop from the 91 permits issued in May 2008, and a 93 percent drop from the 578 permits issued in May 2004.

Unincorporated Cobb issued 24 permits, Acworth had 10 permits, Smyrna had five and Powder Springs had one. Austell, Kennesaw and Marietta did not issue any permits.

"Although these numbers aren't blowing you away, they're heading in the right direction," Economist Dr. Don Sabbarese said.

Sabbarese is the director of the Econometric Center at Kennesaw State University.

While 39 permits isn't a significant number compared to previous years, it is a jump from the numbers issued the first four months of this year. There were 27 in January, 29 in February, 25 in March and 27 in April.

Year to date, Cobb is 65 percent behind the number of permits issued across the county during the same time period last year. There have been a total of 147 permits this year; compared to 426 permits issued by this time last year and 1,949 issued by May in 2004.

Sabbarese said he thinks potential homebuyers are taking advantage of the lower mortgage rates, and builders are finding less expensive lots to build on.

"I'm sure that there are deals out there to get land cheaper and great deals from builders who are hungry to work," Sabbarese said.

Still, things such as high foreclosure and unemployment rates are significantly affecting the housing market, he said.

"Foreclosures are still a major problem, and it's going to take a while to clear that off the market," he said.

There are 1,354 properties in Cobb heading to the auction block in July.

Sabbarese said it is uncertain exactly when the housing market will see significant improvements, "But most people think the housing market will begin turning around some time this year."