So far.
Mecklenburg sees big dip in home building
This should — should — compel local leaders to understand that the local economy is not immune to the forces at work in the current real estate correction. Yes, Charlotte did not experience the hyper-housing markets of a Florida or California. Yes, local home values have thus far remained steady.
Those are lagging indicators people. New home starts falling off a cliff is the first sign of a correction. If we are lucky, the correction will be relatively mild. Perhaps average home price will stay flat for 2008, more buyers will enter the market, and new home construction will pick up again in 2009.
Or the correction may follow the pattern found in other markets. First new construction falters, then new home sales, then existing home sales, then prices start to retreat, then the only question is how much. It should be noted that in every market where this process was unfolding in the past 24 months it was spun as no big deal by the real estate industry and far too many local booster types.
We need to resolve to resist that stunt. We should also recognize that now is a horrible time to have local government involved in speculative real estate deals involving public subsidy. Then again, if we stopped doing that, what on Earth would our local elected bodies do?
Recite the Pledge and go home.
