Another dear, tear-down!

Houses that are purchased to be demolished and replaced by a new one define the new cost of building lots, plus of course, the extra demo expenses.

The small house being torn down is half a mile from where we live and was purchased for about $1 million.

The lot is just 0.26 acre, or a cost of $88.30/square foot, and it’s likely to cost between$1.5 and $2 million to build a replacement home on it.

Maybe that made much economic sense 10 days ago, but I’d bet that sooner than later, the real estate market will follow Wall Street and crater as well, creating a huge opportunity for buyers who will, by then, lack the gumption to jump into the fray!