Teardowns coming back to Connecticut?
Mounds of dirt rising 20-feet high with Dumpsters residing nearby is becoming a more common sight again in Connecticut, as Fairfield County’s commuter towns demolish older houses to construct new and grander ones, according to a recent article in the Wall Street Journal.
These teardowns, which were popular in the housing boom, ceased when prices of land and the cost of construction surged when the recession hit. However, land prices have become more feasible to support teardowns, according to Mark Victor, a local developer, in the Wall Street Journal article.
Resumptions of the teardown trend has led to some analysts to note it as further evidence that Fairfield’s real estate market has stabilized.
“It’s a sign that people are gaining confidence the market is turning around and are more comfortable about their own financial future,” says Vincent Valvo of Warren Group, a Boston-based real-estate tracking firm, according to the WSJ.
The teardown process can take at least three months and sometimes needs permission from the town’s historic district commission, especially if the home is 50 years or older. The commission can reject a teardown request if the home is a historic property or because of its architect or architectural style.
However, the new supply in construction could hinder modest recovery and the most expensive corners of the county have not seen much pickup. Difficulties in getting financing for higher-end homes and a surplus in the amount of these homes has kept activity quiet in this area, according to the WSJ.
For the complete Wall Street Journal article CLICK HERE.
—Kimberly Turner
