Georgia Banks Exposed To Construction Loans
The banks in Georgia have exposed themselves to a record high level of housing loans in the last year. "Construction and development lending at Georgia community banks jumped 45 percent last year, to $9.6 billion in 2004 from $6.64 billion in 2003."
"At the same time that C&D lending has surged 45 percent, loan loss reserves, the money banks use as "cushion" against charged-off loans, grew only 12.4 percent, according to the FDIC."
This statistic makes one wonder, who are all these new homes for? "The state's population grew 1.67 percent, which outpaced the national average of 0.98 percent."
"In the fourth quarter of 2004, the Atlanta market had a 3.3-month inventory of finished, vacant homes. In the fourth quarter of 2000, in comparison, Atlanta had a 2.6-month inventory of finished, vacant homes.The Census Bureau reports that the U.S. inventory of unsold new homes represented 4.4 months of sales in February."
2 Comments:
Well the homes are for the speculators that intend to sell them to others speculators who will sell them to others speculators, who will sell to other speculators. Gee this stuff is really flipping ! Why haven't they invented REAL ESTATE DAY TRADING?
Well the houses are being built strictly for DAY TRADING ACTIVITIES ? Nice concept you buy a hous in the morning and you sell it in the afternoon by internet. Think about that speculators.
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