In my area there has been a lot of new construction. New homes were starting at 280,000 and going up into the luxury class and were selling well a year ago. Now with all the builder incentives it is showing that they are in a tight market.
Builder incentives are as much as no payments until January 2008 on market homes and agent incentives as much as a cruise for 2 with airfare on Princess lines.
Here is where the switch comes in...............
One of the builders that is sitting on an undeveloped parcel has filed for a major modification to the R-PUD plan that was approved. They would like to go from single family housing to mixed use development. They want to build townhouses starting at 170,000 and a small retail area. The township trustees seem to think it is a good thing because of the commercial aspect and the taxes that would be generated but the housing density would be increase so that the same number of units could be built.
Sounds like a plan for the builder to get some commercial construction going which is not currently down and to offer a lower price point home product that they may be able to sell in a slow market.
What do you think of their plan is it a good idea?
Comments(5)