Monday, June 30, 2008

Rethinking the Market for New Condos

Interesting Baristanet Thread discussing proposed townhouse development on Montclair's Georgian Inn site.The final comment by James Matarazzo Jr. sums up the current market:

Town officials can't rely on these builders' reports that things are unsound. They should be crossed checked. Secondly, most builder's realize the townhouse market is stone cold, why even go that route? The big developers have cut back on the townhouse developments, some have even tried to sell their proposed townhouse developments to other builders. Traditionally Townhouses developments were marketed for people who downsized to a less expensive property as well as a lower tax bill, or someone who didn't want to handle the maintenance. In today's present real estate market it's not practical from a financial sense for a buyer to purchase these types of units as taxes are just as high as local housing, if not more in some local towns. It does not make sense from a practical point other than the builder maximizing their profit and the town acquiring more ratables.

1 comment:

  1. I saw your site from google. Your insight about the topic is refreshing. Nice entry. :)