Wednesday, May 13, 2009

Adding to the "much needed" housing stock in the CT Valley

Housing prices are dropping like a rock in the Connecticut Valley and the Council just gave away an easement to build 24 houses* in exchange for ten dollars. I don't see how a supply increase coupled with a demand decrease will improve property values.

If you click through to the National Association of Realtors survey you'll see:

Metro New Haven is down 15%

Metro Hartford is down 10%

This easement made no sense. Just think... we could charged more than $10 and dedicated that money to improvements at Mixville. But then, I guess the Budget Chairman would consider that "extortion." Talk about OTT. Tomorrow I may do more on this vote (passed 5 to 3 - Ruocco, Slocum, White opposed; Sima recused).

Tim White

* 24 = 41 units total less 17 units that could be built without the easement.


Anonymous said...

Recent changes in development rules in town haven't really been able to jump-start the local real estate development market. Just yesterday official word came out concerning the long awaited major north end development, "Cheshire mall project postponed for one year" on page B3 of the Waterbury Republican. Basically, "...At the request of W/S Devel­opment of Massachusetts, the Planning and Zoning Commis­sion has issued a one-year ex­tension for plans to be filed for the project. The extension ex­pires in July 2010.

Maybe town government can now go out of its way to grant more permissions for more developers to promise us they will develop something even if it will be years before any nails meet any hammers in construction.

Hopefully the TC won't being making plans to spend any of the hoped for property taxes these phantom developments bring in.

Joe said...

"I don't see how a supply increase coupled with a demand decrease will improve property values."To further exacerbate the problem, if you take into account the "shadow inventory" (foreclosures that banks are not listing), the supply is actually much greater than what we are seeing.

Anonymous said...

The extension ex­pires in July 2010.

Anything developers ask for they get while the taxpayers are treated as a cash cow, to be milked for the benefit of the special interests.

When this extension expires, P&Z's approval should expire. If W&S can't build a mall, the town should look for another developer, and one that doesn't cost more than they pay in taxes.

My guess is that W/S doesn't have the financing to build a mall and may not survive the downturn.

Anonymous said...

I believe our hunger to spend is finished. Retail will suffer and you will not see huge malls being built.