Proposed Development a 'Homebuilding Debacle'

Jan. 10, 2008 Letter to the Editor, Fitchburg Star
By Gary Leverington / Resident of Fitchburg

(Emphasis added)

I'm writing again to express concern about the proposed NE neighborhood plan. It is my hope that sensible leadership will prevail at the City Council to once and for all put a stake in the plans to turn the NE neighborhood area into a massive homebuilding debacle.

I ask all members of our community to consider where we are in the real estate cycle and vigorously oppose the NE neighborhood being turned into additional houses (and lots for sale) that we do not need and most citizens do not want.

More importantly, there are a plethora of valid environmental reasons to put a stop to turning the NE neighborhood area into paved roads and houses that just add to the oversupply of homes and lots for sale in Fitchburg. Creating a huge new supply of houses here will also place additional downward pressure on existing home values in Fitchburg.

To take land that could be used for organic farming, teaching and organic retail - with the ability to provide good quality food for those that live here now, and those that will come after us - and turn it into another grouping of paved roads, over fertilized lawns (with pesticides), and more houses is beyond irresponsible.

As for developers of new houses - once they've already acquired the land, asking them if we need more new houses is like asking the owner of a shoe store if it's a good time to buy shoes.

Let's request that our community leaders maintain control over what's in the best interest of the community. Adopting a people over profits theme.

As an alternative, perhaps the developer can come up with a plan for an organic farming village that can be a shining legacy for future generations - not just here, but for the entire area! Just imagine how popular this would be for the growing number of people seeking healthy, locally grown, organic food products! What a wonderful and beneficial legacy to leave to our children!

Consider the following: Mortgage performance has suffered: An alarming 5.6% of the nation's homeowners have fallen behind on their mortgage payments — up from roughly 4.7% a year earlier and the most since 1986. The percentage of homes in any stage of foreclosure has jumped to 1.7%, the highest since the Mortgage Bankers Association began tracking it in 1972.

According to some estimates, as many as 2.2 million homeowners could lose their houses over the next 24 months!

We've already seen the price of an American home lose 6.1% from a year ago, according to the well-respected research group S&P/Case-Shiller. The Census Bureau shows the price of new homes down even more — 13% in October, the sharpest drop in 37 years. Lending standards have also tightened so fewer would-be buyers can qualify for loans - this also adds to downward pressure on home prices. More supply with fewer buyers is supply and demand 101!

I fully expect more declines in 2008. Home values will likely fall by the mid-single digits nationwide, and more in select markets. For those that think Fitchburg is immune from a downturn - just ask the people in Florida that bought condos at the top of the market and now owe way more than their homes are worth. They too felt they were immune from a downturn. Let's not allow Fitchburg to become overbuilt and place our home values at risk!

For our community leaders, I know it's difficult to resist the temptation to accommodate developers, but in the example of the NE neighborhood plan in particular, denying approval is quite obviously the right thing to do for our wonderful community.