If you live in an area that experienced high growth in 2005 and 2006 odds are you have a zombie subdivision in your community. You know what I am talking about, roads, lights, maybe even sidewalks installed around fields of weeds and brush. Perhaps there are a couple of homes built, maybe even a face that looks out from the home nervously when the rare car drives by.
The Zombie Subdivision. The living dead of real estate.
The Wilmington Star out of North Carolina had an interesting article on the phenomenon. Wilmington
and the surrounding area had a huge boom as people were leaving the northeast and moving to the ocean. Property values soared. Development was rampant. In Brunswick county, between Wilmington and Myrtle Beach, huge golf communities were planned and permitted. In 2005 and 2006. Ready to open just when the bottom fell out of the market.
These empty tracts, the shell is ready but there is no life, are the prime examples of zombie subdivisions.
It’s clear now to developers, bankers and real estate agencies that the planned development in Brunswick didn’t fit the market.
“What we saw from an appraisal and real estate point of view was that we really peaked about the third quarter of 2005,” said Tom Shoaf, a broker with Coldwell Banker Sea Coast Realty. “But by then, the permits had been pulled for a lot these projects and stuff was getting in the ground, so they were past the point of no return.”
In the end, these developments will probably get moving again – though maybe not for the next couple of years, officials say.
“I foresee a slow, steady growth,” Brunswick County Assistant Attorney Jana Berg said.
But the homes will likely be cheaper, smaller and come with fewer perks.
reported by Moishe Alexander, CFC CEO
http://www.therealestatebloggers.com/2009/05/27/zombie-subdivisions-the-living-dead-of-the-real-estate-market/