When I last visited this development I commented that, though the posted sale price had been revised upward, no homes had actually started construction. That is no longer the case. At last count there were actually at least six new homes in various stages of construction on this street in Ellicott City.
Apparently more will be starting soon.This is a good sign that things may be finally turning around for the homebuilders. It will be interesting to see if the posted sales price changes again.
I am still extremely bearish on real estate. Prices are already on life support thanks to homebuyer tax credits. According to the stats that Pat Hiban published on his blog, prices dropped 10% from this time last year. That means many people who purchased a home last year had most of their down payment wiped out already. I am surprised to see these prices rise, but are they selling?
ReplyDeleteI'm bearish on residential real estate as well.
ReplyDeleteIn fact there is only one industry more depressed...boating. Does any one want to buy a two bedroom, two bathroom floating apartment for $150? It might come to that.
Actually, There is a season for planting and a season for harvesting. The most successful developers have a sixth sense that precedes the intuition we lesser mortals have. The bottom and the pessimism in real estate might be the right time to start building. If so, it is a good sign for all of us.
HH