As I noted in my last post, I’ve had a spate of residential subdivisions to appraise. I’d like to clarify a point. In no way am I suggesting that subdivision development is economically feasible in Hardin County, Bullitt County, etc. But the decline in home prices we’ve seen over the last few years may be coming to a halt. Builders are beginning to purchase lots in bulk – which can only mean that they are running out of stock.
So what I meant by my last post was that the construction of single family homes is once again becoming economically feasible. For the last couple of days I’ve been updating my database with the latest housing permit figures, population growth, employment growth, etc., and I think you may be interested in the results. This chart presents the relative supply and demand of housing in Hardin County over the last ten years and goes a long way towards explaining the spike in home prices in 2010 and the subsequent decline. But note this, in 2013 for the first time since 2010 the demand for housing units surpassed the number of housing units permitted which suggests to me, at least, that the worst may finally be over.
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