Post by fuzzyscorpio on Sept 8, 2006 18:34:04 GMT -5
Several of us have speculated lately that the general downturn in real estate might give doo-wop a break from the wrecking ball. With apologies/condolences to anyone whose primary income source is the building trades... and granted that Ocean City is not the Wildwoods... this article from yesterday's Press of Atlantic City would seem to support that hope. The mayor in OC says builders are "doing 30 percent of the volume of a year ago..."
(The article also notes that Ocean City bans demolitions during the summer. Take a hint, please, Ernie?)
Slower housing market means fewer demolitions
OCEAN CITY — As tourists stow their beach bags for another year, Ocean City is getting ready for the launch of its second industry: teardowns.
Builders say they are seeing a dramatic slowdown in home construction on the island, reflecting a national trend. That could spell fewer demolitions, new homes and jobs on the island this fall.
“Our busy season usually starts in the fall. I hate to say it, but it's not going to be half as busy as past falls,” said Mark Tietjen, manager of Peter Lumber in Ocean City.
The New Jersey Builders Association said the number of home starts is down 15 percent statewide over last year.
“The slowdown is gaining momentum,” trade group spokesman Patrick O'Keefe said. “The watchword in new home construction is inventory management. Builders are not starting units unless they have firm commitments of sale.”
Tourism still fuels Ocean City's economy. Everything from local politics to demolition is geared to the vacation season. But the building trades are a crucial part of the city's job base, particularly in the fall and winter.
“It's very important. I go into Wawa at 7 a.m. in the winter, and if 30 people are in line, 25 are in the building trades,” Tietjen said. “It's a big part of Ocean City.”
Ocean City builder Halliday Leonard has seen its workload drop off considerably. The company had 80 jobs lined up last fall. It has fewer than 20 planned for this fall.
“I haven't seen this kind of slowing in 16 years,” builder Scott Halliday said. “We're seeing a steep decline in the number of homes under contract or demolished.”
“They're doing 30 percent of the volume of a year ago. I think that's consistent with the information we're getting with building permits,” Mayor Sal Perillo said.
“In the housing market, you have people … betting that by the time the property is completed, it will be worth significantly more than when they started construction,” he said.
But these speculators no longer make up a substantial part of the new construction market.
“They're all owner contracts, not speculator contracts,” Halliday said.
As a result of the slowdown, his building company plans to give fewer jobs to subcontractors.
“We're going to do a lot of the work ourselves, keeping the work in-house,” Halliday said.
And with more investment homes lingering longer on the real-estate market, the city likely will see fewer demolitions, O'Keefe said.
“I think all of that will act as a depressant on the demolition and construction of new units on the island,” he said.
The city lifts its yearly summer ban on demolition Monday. Ocean City was second only to Camden in the number of property demolitions in 2005, according to state figures...
Source:
www.pressofatlanticcity.com/news/local/capemay/story/6726974p-6596512c.html
The implication, I think, is that there's a window of opportunity opening in which everything possible should to be done to help the doo-wop motels refurbish, renovate, and thrive so that when the market ticks up again, the temptation to sell out to condomination hopefully will not seem so irresistible...
(The article also notes that Ocean City bans demolitions during the summer. Take a hint, please, Ernie?)
Slower housing market means fewer demolitions
OCEAN CITY — As tourists stow their beach bags for another year, Ocean City is getting ready for the launch of its second industry: teardowns.
Builders say they are seeing a dramatic slowdown in home construction on the island, reflecting a national trend. That could spell fewer demolitions, new homes and jobs on the island this fall.
“Our busy season usually starts in the fall. I hate to say it, but it's not going to be half as busy as past falls,” said Mark Tietjen, manager of Peter Lumber in Ocean City.
The New Jersey Builders Association said the number of home starts is down 15 percent statewide over last year.
“The slowdown is gaining momentum,” trade group spokesman Patrick O'Keefe said. “The watchword in new home construction is inventory management. Builders are not starting units unless they have firm commitments of sale.”
Tourism still fuels Ocean City's economy. Everything from local politics to demolition is geared to the vacation season. But the building trades are a crucial part of the city's job base, particularly in the fall and winter.
“It's very important. I go into Wawa at 7 a.m. in the winter, and if 30 people are in line, 25 are in the building trades,” Tietjen said. “It's a big part of Ocean City.”
Ocean City builder Halliday Leonard has seen its workload drop off considerably. The company had 80 jobs lined up last fall. It has fewer than 20 planned for this fall.
“I haven't seen this kind of slowing in 16 years,” builder Scott Halliday said. “We're seeing a steep decline in the number of homes under contract or demolished.”
“They're doing 30 percent of the volume of a year ago. I think that's consistent with the information we're getting with building permits,” Mayor Sal Perillo said.
“In the housing market, you have people … betting that by the time the property is completed, it will be worth significantly more than when they started construction,” he said.
But these speculators no longer make up a substantial part of the new construction market.
“They're all owner contracts, not speculator contracts,” Halliday said.
As a result of the slowdown, his building company plans to give fewer jobs to subcontractors.
“We're going to do a lot of the work ourselves, keeping the work in-house,” Halliday said.
And with more investment homes lingering longer on the real-estate market, the city likely will see fewer demolitions, O'Keefe said.
“I think all of that will act as a depressant on the demolition and construction of new units on the island,” he said.
The city lifts its yearly summer ban on demolition Monday. Ocean City was second only to Camden in the number of property demolitions in 2005, according to state figures...
Source:
www.pressofatlanticcity.com/news/local/capemay/story/6726974p-6596512c.html
The implication, I think, is that there's a window of opportunity opening in which everything possible should to be done to help the doo-wop motels refurbish, renovate, and thrive so that when the market ticks up again, the temptation to sell out to condomination hopefully will not seem so irresistible...
