"Tear Down Fever" In Alabama
The housing bubble is sparking all sorts of development, but how about this; "tear down fever." Birmingham News, "Like Tapscott, Bradford was buying dirt. She and her son Randy Billingsley are tearing down the 2,600-square-foot home and replacing it with a large Tudor house priced at $899,900.'We don't have a buyer yet," Billingsley said, "but we've had a ton of calls. It's kind of going crazy right now.'"
"It puts us in a dilemma if someone pays $500,000 for a 100-foot lot," said Terhune of his annual revaluation work to figure the property tax bill. "If we put a comparable price on older homes, it blows them out of the water. What is their value?"
Not every community is caught up in the craze. "But tear-down fever hasn't hit Madison County. 'We don't have to do that, because we have a lot of land,' chief appraiser Mike Cooley said."
2 Comments:
I live in Chicago, but everytime I visit my family back in Indianapolis I am shocked by the amount of new construction there. The job market is very weak in Indianapolis. Folks who have to sell there are having a hard time but they are still building. There has still be enough profit to be made that the cost to build and hold inventory is not a sufficient restraint. This article about teardown fever in Alabama is more anecdotal evidence that the Real Estate bubble is a national phenomena.
Anon,
The job market is weak in most places. That is the main reason the bubble can't continue.
Thanks for commenting Ben
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