This year could be metro Atlanta’s strongest for the battered homebuilding industry since 2008, industry experts say.
In 2010, new home starts rose 28 percent in metro Atlanta from 2009, according to Eugene James, head of the Atlanta division of the research company Metrostudy. Construction levels are still down down 78 percent since the peak in 2006.
Builders large and small see 2011 as their opportunity to build more than they have in at least two years.
Dale Bercher, a former Traton Homes executive, started his own company last year. By the end of 2010, Kennesaw-based Bercher Homes had built and closed three homes and started building two more.
“I’m finishing those last two homes right now,” he said. “And my goal this year is to close 10 to 12 homes.”
In 2010, Beazer Homes had 4,122 new home orders, a 1 percent increase from 2009, according to the company’s annual report.
“And I would say we’re very optimistic about this year,” said Adam Corder, the land acquisition manager for Beazer’s Georgia division.
The company is building homes in several subdivisions across metro Atlanta, he said.
“The two communities that we opened last year are doing well,” he said. “New home sales are where they should be or better.”
James cautioned there could be more trying times ahead for builders.
“We don’t anticipate housing starts ramping up astronomically,” he said. “But we do expect to see an increase by the end of the year.”
He said there are fewer than 20,000 unsold new homes across metro Atlanta. While still a significant inventory, that’s about half the number there were in 2006.
“It’s been well over a decade since we’ve had so few new homes available for purchase,” he said. “So going forward, people looking for a new home are not going to find much to choose from. And we don’t think builders can put up homes fast enough to meet demand.”
James said as the economy continues to strengthen, prospective buyers will begin to house hunt.
“We think this slow period could pick up rather quickly,” he said.
The reduced number of new homes available could fuel the economy’s recovery, suggested Bercher.
“If there is a limited supply, that will push prices up,” he said. “And as prices rise, the economy will respond.”
Kennesaw-based Bercher Homes had built and closed three homes and started building two more.
