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I just recently returned from another fantasic season in Saratoga Springs. I've noticed that despite the economy, declines in residentail real estate prices, credit crunch/market and capital market issues, etc. -- there is still a lot of new construction going on.
Right in town, there are 4 new condo projects (one on Broadway and Congress Park, one attached to the Comfort Inn hotel on Lake and High Rock, another next door to the Parting Glass, which is being marketed for interest at this point, and the last is on Henry Street). There might be more. Outside of downtown there are new construction/developments being built -- very nice single family homes. I can only speak to what I saw in town, however, the prices are higher than ever.
Are these units selling at these prices? Slower? As fast as they were 5 to 7 years ago? I was somewhat surprised at the prices. I think I am getting the party line from brokers and the salespeople. I am seeing 1 and 2 BR's for $600k to $900k, maybe $1m, and 3 BR's from $700k to $1.5m -- maybe more. Is this where the market is here? I don't know if a lot of units are selling at these levels or not though.
Any thoughts? What's the market like in Saratoga Springs? Thank you in advance.
1Mil Condo's in Saratoga? I'm not an RE agent but I did live in Saratoga for three years (1998-2001).. I have high doubts they are getting those prices. To start... there are over 400 listings on Realtor.com for homes priced over $300K yet the median price of a home in Saratoga County is $230K... and $175K in the nearby Capital District. Those prices were certainly inflated because of a booming economy, and Saratoga seemed to be a desired education of bankers and brokers (Hamptons of the North), however given the current housing crisis and the more recent stock market losses you'll be lucky enough to find a buyer to pay half of those list prices.
This recent article from last April reported a 15% plummet in home prices. The area certainly has inflated home prices because there are no nearby jobs. People have to make the 45 min commute to Albany/Troy to be able to work.
We had some remodeling done by a builder in the area and they are VERY busy. They have several developments and are selling houses. I don't think it is booming, but it appears the market is moving in Saratoga area.
We spoke with two couples in restaurants this week who are building in the area, retiring from LI.
Thanks -- I would have thought so as well, but these various projects are going up, and going up fast. It's certainly not a case of the builders building into a market that is turning around or something of the like.
These condo's are in a different marketplace than the median Saratoga Springs home. I understand there are different buyers at this level -- the "vacation" or part-time buyer, as well as the year-round resident who comes to the area, etc. However, in today's environment?
If these units aren't selling then there should be plenty of inventory in the coming 12-24 months. I know most prices have come down, and in many cases, drastically. What surprises me in this market is that I haven't seen any meaningful price drops. I guess builders don't mind sitting still. It's not like they are not selling anything. Maybe they are not selling them at the pace they thought. Maybe they are. Be that as it may, sometimes you never know what kind of market you are building into, but I guess it's not a concern for these builders.
By the way, these condos are very nice. Thanks again.
Condos, condos everywhere, yes it seems like with the 5+condo projects currently under construction in Saratoga and the 2 new ones to come, one on each end of the railroad…one actually in the Price Shopper lot, we might be over building condos in town.
Because the condos are mostly priced over 700,000, they will cause a glut in that price range, hopefully the builders will realize this before all of these high end projects are completed and readjust their price ranges downward, but I am not holding my breath! I also would be happy if they would be required to have 3 parking places per unit, we are currently experiencing a shortage of parking similar to that seen during track season and it will only get worse as the builders of some condos are only supplying 1 spot per unit.
Although homes prices in the Saratoga city area are up 4% this year, certainly the current market conditions will affect home sales in this area eventually. Currently I have 2 buyers looking for homes under 300,000 and they are unable to find good quality homes. Concurrently it seems like everyone I meet wants to retire to this area, if the condos were priced under 300,000, I could sell them very quickly.
Well-loved and well-priced homes are selling; I just sold 2 this month, one for full price and one in 2 weeks. Only time will tell us if these mega priced condos will sell, I wouldn’t want to be a builder in this market that is for sure.
Overbuilding is a common problem. It might get much worse. I don't know. I see condo's, and homes, on the market longer and longer. What's interesting is that there is already more supply than demand at many price levels. I don't know if these higher priced condo's are selling quickly or at all. I see new construction homes in the 400-600 range going up and I am not sure if they are selling either.
Parking will continue to be a problem. It will be more and more of a premium. I read an article in the local paper that portrayed the parking problem throughout the year, aside from the track season. People who work in town drive in and cannot find parking. Construction projects have taken away from the parking -- the Henry St. lot by the wine store, and the lot that was next door to the Parting Glass.
This past summer, for the first time, I didn't drive at all into town. I left my car and walked, or took a cab. I was wondering what ever became of the Price Chopper project. So it's going to happen -- when will the Price Chopper be closing?
I think the 4% number is probably distorted. I'd be very interested to see the various price range levels. I saw a few homes, fix'er up'ers, that sold under $200k, but they were still on the market for several months, and they still had sevreral price drops before they were sold. I looked at one on the Northwest side -- started at $185k (I think) and sold almost 6 months later for about $150k. What about that new development near the Art Deco area? Have any of those houses sold yet? There were X number of lots two, maybe three years ago -- and it didn't seem like there were a lot less this past summer.
In today's day and age, with many financial markets as they are -- the ramifications can and will be very severe. Thanks for the commentary.
Quote:
Originally Posted by Leslieshomes
Condos, condos everywhere, yes it seems like with the 5+condo projects currently under construction in Saratoga and the 2 new ones to come, one on each end of the railroad…one actually in the Price Shopper lot, we might be over building condos in town.
Because the condos are mostly priced over 700,000, they will cause a glut in that price range, hopefully the builders will realize this before all of these high end projects are completed and readjust their price ranges downward, but I am not holding my breath! I also would be happy if they would be required to have 3 parking places per unit, we are currently experiencing a shortage of parking similar to that seen during track season and it will only get worse as the builders of some condos are only supplying 1 spot per unit.
Although homes prices in the Saratoga city area are up 4% this year, certainly the current market conditions will affect home sales in this area eventually. Currently I have 2 buyers looking for homes under 300,000 and they are unable to find good quality homes. Concurrently it seems like everyone I meet wants to retire to this area, if the condos were priced under 300,000, I could sell them very quickly.
Well-loved and well-priced homes are selling; I just sold 2 this month, one for full price and one in 2 weeks. Only time will tell us if these mega priced condos will sell, I wouldn’t want to be a builder in this market that is for sure.
I looked at 30 houses under 300,000 last summer with clients to only find 3 without major structural problems, I think you will find houses not selling in Saratoga come into 3 categories. bad location, bad structure or unrealistic sellers.
Price shopper lot has sold and will be condos, they tell us it will have price chopper for a few years....I will really miss walking to that store if it goes! I hope they will get to keep it there.
gotta go rake the end of my leaves..Les
Moderator cut: realtor soliciting
Last edited by bellafinzi; 11-19-2008 at 01:22 PM..
I think they also have another development, maybe in Wilton, and I think those are closer to $500k -- I'm not sure though.
Yes Brampton Woods is in in Northunderland. Really nicely laid out, with lots of trees remaining. The other development is more expensive, bigger homes, something to do with golf. The Tees, The Links?
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Selling Some
