Monday, September 17, 2007


Gwinnett Place Mixed Use Project

The Atlanta Business Chronicle reports on a request to build a large mixed used project beside Gwinnett Place Mall.

Eastern Development Group LLC has asked for rezoning to build Cartium Grande, an 851,900-square-foot mixed-use development in Duluth, Ga.

The developer's plans call for 414 high-rise condominiums, 28,950 square feet of retail space and 21 "guest quarters." The proposed project would be at 2161 Merchants Way in Duluth.

Pending rezoning the project will start in 2009 and be finished by 2011.

Friday, September 07, 2007


Record Number of Gwinnett Foreclosures

The Gwinnett Daily Posts reports that September set a new high for the number of houses foreclosed. There were 752 foreclosures in September. And unfortunately, the number is likely to increase still more as Adjustable Rate Mortgages (ARMs) continue to reset to higher interest rates over the next six months. The number of outstanding ARMs only begins to decrease after the spring of 2008.

The large number of foreclosures affects the entire housing market. Those who lose their homes to foreclosure are locked out of the home buying market until they can reestablish their credit. This reduces the total number of buyers as well as slows down the normal upward mobility of the average buyer. This slows down the entire cycle of people moving from smaller to larger houses. Fewer buyers leads to a "buyer's market" putting downward pressure on prices. The houses foreclosed typically sell for less than other homes on the market adding still more pressure on prices.

Relief is still months if not years away as the market must absorb all the foreclosed homes, and it will take time for the foreclosed buyers to reenter the market.

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