What we can learn from the resilient Southeast housing market
Following previous recessions, housing could always be counted on to lead the nation’s economy back to prosperity. That didn’t happen in the housing recovery following the Great Recession.
New residential construction has continued to advance year after year. But the pace has been slower than usual. And several years into the recovery, annual production remains below where many industry analysts would like to see it to meet the needs of the nation’s growing population.
To gain the home-builder perspective on the industry’s relatively lackluster performance, Fannie Mae Chief Economist Doug Duncan invited Charles Schetter, CEO of Atlanta-based Smith Douglas Homes, to address Fannie Mae employees at the company’s headquarters in Washington, DC.
“In the forecasting space, one of the things we’ve found challenging is why the supply-response function has not seemed to operate normally post-crisis,” Duncan says. “I thought he might be a good person to address that.”
Schetter notes that the inventory of homes for sale has been low in the Atlanta market, as it has been in many parts of the country.