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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]There's certainly a big selection of large new builds there. They tend to sit for a very long time.[/quote]

True. House hunters in that price range generally tend to want a more manicured environment, e.g. Sumner. That's definitely not Glen Echo Heights. [/quote]

I'm pretty sure it's been easier to find land/houses in GEH to tear down, but given the large stock of $1.8M+ new builds there, why would builders keep building them? It would strike me as costly to have a property sit a long time on the market. [/quote]

The developers have interest-only loans. They don't pay principal. They can afford to sit on the house for at least a year or two.[/quote]

Any idea what their margins are? I'm interested in ballpark estimates of how long they can tolerate the negative cash flows.[/quote]

Good question. Builders are currently paying $500-$600k for a teardown lot in Glen Echo Heights. Some of the new builds are going for $2M+ but others are landing in the $1.3-$1.6M range. After construction, the margins could n't be that great.[/quote]

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