Having 2 million into a midtown house is not over built. Having over 3 million is. There was one home on South Court that sold for 3.1 in 2007 and one on Rosewood that sold for 3 mil and everything else has sold for less. So if you can get someone to build you a home with permits, drawings, and construction for 800K or less you should be fine investment wise, plus you get a home built the way you want it.
I'm researching/exploring a new construction, if I buy a house say 1.2m in midtown, put another 700k to rebuild, is it over build? thanks!
The home is large for midtown, and very ornate. Not only have no homes sold over 2.45 in the last 6 months in midtown, but only 6 homes have sold for over 3.6 mil in all of PA in the last 6 months. There is a large house on Ramona in midtown that has been on the market 192 days and is listed at 3.2 mil right now without selling. Randers has been on 52 days. So my opinion is that this is a tough price range anywhere in the bay area right now, but for the Rander's Ct location and lot size, I think they are overly ambitious with what they are pricing at. So the short answer is no.