"I think we overbuilt the market"
From the New Transcript, a local paper
snip...
[Tucciarone believes Kara Homes' difficulties are rooted in a downturn in the housing market, a market he describes as "super-saturated" with upscale homes.
"I think we overbuilt the market," Tucciarone said. "Once you out-build the market there's no one left to buy the homes. It's not just Kara, I think we overbuilt the state."]
posted by Little_Silvered at 9:59 PM
6 Comments:
Well, the OB mayor seems like a candidly diplomatic guy. He is correct, the "housing slump" isn't what did in Kara. It may have helped speed along the demise, but seriously, they would have had to have sold an awful lot of homes to climb out of that black hole of debt they managed to accumulate. If their management, based on the trends they saw developing in the past few years, actually believed sales would continue to grow and grow, hell yeah that's mismanagement. As far as the claim that the area is overbuilt, well duh.
How will the over built parts of NJ effect the rest of the state? I live in a shore town that has condo units still being completed, but, none are sold.
Will the huge condo supply here plus SFH inventory in other areas of the state lead to significant price declines?
I live in one of the resort towns where people say "this area is immune and will always hold it's value".
I have seen a few small decrease in prices for homes that have been on the market for month, but nothing to make the purchase more attractive.
I am looking to buy and don't trust the realtors or media that spouts "all is great in the economy". I am very concerned about making a purchase at this time and would like any insight. Thank you.
You people are such idiots. Why doesn't anyone believe what has been written here previously. Kara was completely mismanaged by a bunch of bungling has-beens who don't have a clue about home building. I was there and witnessed it first hand. The slowing market just drove the dagger through Zudi's ice cold heart. And he deserves every single thing he's getting.
it's all just herd mentality. it's unbelievable. there are so, so many empty "luxury" condos on the market. think: how many peope do you know that have the deposit and closing costs to pay for a $500,000 condo?! how's about one in asbury park! it's crazy. the market is way oversaturated by greedy builders and polititians. they are all now going to get what they deserve. such a shame.
The "luxury" condos in Middletown remind me of the sea of dated-looking cookie cutter condos that abound in Edison. With all the luxe waterfront condos being price-chopped in many shore communities why would anyone pay a small fortune to live in a mini-city within a suburb with attractive views of a supermarket parking lot and a state highway? Answer: They won't.
The condos in Middletown you are talking about look absolutely horrible. Centex really dropped the ball with that design. The Villages at Chapel Hill look like low-income housing. If they expected to achieve a price point of $464k-534k they should have really taken more time on design. Sales are going very poorly there. In my opinion they need to drop that price point by $100k-150k to close that project out. I don't know a "luxury" buyer out there that would buy that schlocky product.
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