Greenwich Real Estate Is Up 18.75% Since 2010

73 Club Road, a land sale, fetched $8M in 2010.

73 Club Road, a land sale, fetched $8M in 2010.

My, but that sounds confident, does’t it? 18.75….such a precise sounding number, very impressive.

So, where did I get it? From these two sales:

73 Club Road, 12/2010

73 Club Road, 11/2013

It’s exceedingly rare to get a true “apples-to-apples” comparison in the field of real estate. Typically we deal with houses, and houses can be changed in small, but significant ways each time you get a new owner. Something as trivial as pretty wallpaper, clean windows, and better looking furniture can add hundreds of thousands to the price of a Greenwich home, and that higher sales price is then falsely attributed to a “market rise”.

Yet here, at 73 Club Road, Riverside, we have a rare opportunity to compare two sales of the same property, three years apart, where nothing was changed. It’s the same 2.62 acre waterfront parcel (in the 1-acre zone), the same 1950’s tear-down house, same view, same neighbors.

The result? $8,000,000 back in 2010, $9,500,000 yesterday. Ipso fatso*, Greenwich prices “must” be up 18.75%! Case closed.

* Otherwise intelligent people sometimes screw up words and phrases. “Ipso facto”, is amusingly corrupted as above, “statue” of limitations, is another. And let’s not overlook “supposably”.

73 Club Road, still a land sale, fetched $9.5M in 2013.

73 Club Road, still a land sale, fetched $9.5M in 2013.

8 thoughts on “Greenwich Real Estate Is Up 18.75% Since 2010

  1. I love the Moon-driven, ultra high tide photo, I just wonder if the new buyers have seen the same view at the bottom of the tide when it is a mud flat and a canal? On the other hand, is this house benefitting from the house next door at 51 Glen Avon?

    • Fly:
      All reasonable questions (except that “moon-driven” silliness), so here are the answers: These latest buyers come from one street away and are well aware of the tide’s ranges. 51 Glen Avon, the magnificent waterfront mansion that is adjacent to this property, was in place for both sales of 73 Club Road.

      • Gid, if you think hard (or ask Chris) you will realize that I know something about high tides on that end of Glen Avon/Club Road. Thus, I can assure you, that photo was taken during a new moon or full moon high tide. High tides there on the first and last quarter are a foot or so lower.

        Either that, or in front of a storm surge.

        Just saying.

      • Fly:
        I am aware, old sport, of your local knowledge, just as you are likely aware that I have spent my ENTIRE LIFE observing Riverside waters.

        But in cases where two superior intellects disagree, it is often a case of a missing bit of information. I will now supply that information: I attended BOTH photo sessions, and in each case, all we did was check the tide schedule and make sure the photos were taken at “approximately” high tide. I can assure you there was nothing unusual about either of those tides, no matter how the photos may make it appear.

        To repeat: I was there.

  2. Land values and appreciation, in a fully developed marketplace such as Riverside, are tied to, and are a function of, the property’s “potential value.” Buyers weigh what they are willing to pay for the land plus the cost to build a house (potential value) vs. buying something already built like 51 Glen Avon next door. Fortunately, costs to build have essentially remained the same during this period. So, assume a dwelling fit for this site is going to run you $8mm to build, add that to the land cost, and you get potential values of $16mm in ’10 vs $17.5mm in ’13.

    Voilà! The market is up 9.375% in 3 years. BTW, this is a main reason why land values crater at a much faster rate than house values when the market goes the other way.

      • Gid, if you want to go back further, 51 Glen Avon sold as land in 2004 for $4.5mm. That was for a single lot of 1.1 acres with 230 feet of direct waterfront. Can you extract a change in value between that 2004 sale and this one? Not apples to apples comp but could be an interesting exercise.

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