I certainly can’t recommend buying right now, but many readers have been wondering just who has been buying and who has been putting in those bids.
Well it turns out there is a big fish in town. So if I can’t convince you to wait on the sidelines, and you get outbid, don’t feel so bad, it might have been a billionaire that outbid you.
More tear downs are coming
National developer targets area’s single homes
It’s spring and the birds are chirping, daffodils are coming up and houses are coming down. Developers have been buying up homes in the Rolling Hill area of Chatham Township and on roads off of Noe Avenue for anywhere between $700,000 to $950,000 just to knock them down and build bigger homes costing twice as much. Tear downs and rebuilds have been the domain of a handful of local builders in the area, that is until Hovnanian Enterprises announced its new Classics Division would be targeting several Morris County towns, including the Chathams and Madison, and Summit in Union County.
According to published reports, one of the first homes to be built by this new unit will be in Chatham Township on Longwood Road. Hovnanian recently purchased the split level and has plans to build a six-bedroom, three car garage home of approximately 4,000 square feet, almost double the square footage of the existing home. The new home is expected to cost between $1.5 and $2 million, which is in line with other rebuilds currently on the market. Hovnanian calls the process “replacing obsolete homes with more energy efficient ones in keeping with the character of the neighborhood.”
Several local developers have been tearing down smaller homes to build bigger ones in Chatham Township, since there is almost no vacant land available for new-home construction in the area, planning board member Tom Browne said. This is occurring in sections of the 200-year-old township that were developed in the 1950s, he said.
One of New Jersey’s largest home builders — K. Hovnanian Homes — announced recently that it was getting into the act, having created a new division specifically to build larger homes on the footprints of smaller, razed houses.
Chatham and Morris townships are two Morris County towns where a division of K. Hovnanian called Classics of K. Hovnanian is in the process of building a taller structure after razing a smaller home. Other towns, including, Summit and Bernardsville, also have been selected by the developers.