To expound on this article from the Business Journal:
What I was trying to discuss was the reduction in construction, where that approximate reduction in sales (on a 12 month moving average basis down 62%+ peak to throught and we have seen a 35% reduction in new home inventory from 3690 in 6/1/07 to 2488 in November, I felt somewhat safe in saying that new home construction was off at least 80% ,62% reduction in sales and a 35% reduction in inventory… 80% reduction in construction seems like a conservative number regardless of what the permit data is saying. Best, Tom
The housing slump that torpedoed growth in neighboring states is starting to take its toll on Alabama’s economic health, according to the latest Federal Deposit Insurance Corp. report.
Single-family home permits across the state dipped 40.1 percent in the third quarter ended Sept. 30, while multifamily permits plummeted 69.7 percent. During the third quarter of 2007, single-family permits declined 26.5 percent and multifamily permits were down 25.5 percent, FDIC data shows.
Tom Brander, publisher of the Rudulph/Brander Monthly Birmingham Area Real Estate Report, said new home sales dropped about 80 percent, so it only makes sense for building permits to decline along with those numbers.
Furthermore, the amount of inventory on the market is above normal and in order to decrease inventory, homes already listed on the market must be sold before any new homes are added to the stockpile, he said.