Upper Saddle River homes sales have lagged the market. The boom years created a large inventory of new high priced homes. These homes are dropping in price and pushing down on the inventory below them. This leave little distinction in home prices between a 4500 sq ft to a 8000 sq ft new home.
I have written about this phenomena before. It is when homes are provide far above the neighborhood normalized ceiling price for a community. The normal market purchasers become lock out of the market and the market doesn't attract enough buyers at these expanded size and scope of development.
Markets have their mix and it can expand and contract, but it can not over run itself. Builders tryed to create their our market. This is fool hearty and not a business like approach to the business. I seen this happening and closed my last new house in Upper Saddle River in February of 2006. It was 5507 sq ft. and sold for $1,850,000. This was then literally 50% of the upper sale prices to happen. When I started the house in the Spring of 2005 I thought I would be in the 80 percentile of the market. The new formed builders had different ideas. Bigger, better, more glitz, and more money!
The most inportant thing a builder/developer must do is know their market. They must know what the demographics can carry. I have made this mistake only once. It was due to a sold deal going in cause me to start a house larger in particular market than I would normally. The sold deal died and I had approved site plan and permits for a house. It was like hitting your thumb with a hammer, you know your going to hit it, but you can't stop your swing.
There is more to success over a long period of time than just luck. Luck is good, knowing your business is vital!
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