When did the bubble burst?

October 9, 2008

I’ve been selling new construction for nearly 8 1/2  years now, and during that time their was always one thought in the back of my mind…”This bubble has to burst some time.”  The bubble I am talking about was unbelievable amount of new construction being built and sold in our area.  How can it continue?  Where will all these people come from?  Where are they getting all this money?  Well, we all know now how many people were affording these new homes, just pick up any paper, watch any news program, or just listen to the number one topic in the current presidential debates, its no secret,  the disaster which is our lending institutions is a joke, but that’s for another time. 

Just how far have we fallen?  Lets go back to 2001, and I am only talking about lucas county here, there were 818 single family building permits issued, read about it here…http://findarticles.com/p/articles/mi_qa5333/is_/ai_n21308554.   According to the Lucas County Building Regulations Dept. ’02 had 844 permits issued, ’03 had 937, ’04 had 974, back to normal in ’05 with 798, then “POP” there went the bubble..2006 saw a decline to down to 464 single family building permits, and last year, 2007, how about 264! So far this year, 2008, a incredible 150.   If my math is correct, that’s almost an 85% drop in 4 years…What does 2009 hold for builders in the area?

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