Some Developers Holding Off Building or Scaling Down
Although it is difficult to establish to what degree at this time, it is becoming apparent that some developers are either putting their project(s) on hold, or releasing in phases, because of the slowdown in the market. In 2007 there were 50 new real estate developments that were announced. Some of these projects didn’t actually break ground, but “tested the waters” by making an announcement and then taking preliminary orders or initial deposits of small amounts. Some of these developments that have not seen the response they were hoping for, can still hold off building or even cancel the project(s). Others have decided to re-evaluate the timeframe for the project, putting it out over a longer period of time, and/or releasing in phases. At the end of 2008 we will be contacting developments to find out exactly what each project decided upon and what their plans are for 2009.
This can be seen as good news, as most likely the inventory for new real estate product is not as large as once estimated.
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