Does One Example Prove Anything?

524 North Street, fetched $5.2M in 2008, sells again, this time for $3M.

524 North Street, fetched $5.2M in 2008, sells again, this time for $3M. List: Lee Prince  Sell: Edineia Bickerstaff

So yeah, no, one example proves nothing! But for blogging purposes, it sure does save time researching the market! But seriously, I really do believe this one example, 524 North Street, neatly sums up the whole “real estate collapse of 2008” story quite neatly.

You students of history will recall, the property was owned for five years by interim Citibank Chairman, Charles Prince (he paid $4.475M in 2003). He put it back on in January 2008, for $6,150,000. The market declared that too high, so it was reduced to $5,850,000 in April, finally striking a deal in July, and closing, are you ready? August 20th, 2008, for $5,200,000. Just think about that: August 20th!

Late August, 2008, Bear Stearns was going under, Lehman Brothers was about to disappear, the whole financial world appeared to be crashing, and the absolute last one out the door was….? Chuck Prince!

I seem to remember hearing that the listing broker had to twist his arm to take the deal, but I could be wrong about that. Prince also agreed to replace the exceedingly expensive cedar roof (a wise decision if it kept the deal together).

So now, eight long years later, the place sells again, this time for a measly $3,000,000. Does that mean the market for mid-country is really, truly still down 42%? No, because as nice as this place showed, it still looked dated and tired. Even in an unchanged market, it still wouldn’t have reclaimed that $5.2M.

Yes, the land value dropped during those eight years, but that doesn’t tell the whole story. If the house had been kept up-to-date, it might have sold for a better price, maybe even one million dollars better.

Listing Agent: Lee Prince

Selling Agent: Edineia Bickerstaff

 

14 thoughts on “Does One Example Prove Anything?

  1. There’s another factor at play in collapsing RE prices in Green*ich! The legislature and our idiot guv have effectively DESTROYED the Greenwich market with their witless Soak the Rich income tax scheme It may play well in B’Port and Hatfahd, but the reality is that it is strangling the middle and working class in the long-term. They have created an environment so hostile to wealth that the rich willingly slash their asking prices just to escape the state for more welcoming venues. Progs REALLY ARE morons.

  2. So how do you explain 98 North which sold for 3.1m? Completely updated and perfect, yet price is nowhere near where it should be.

    • Anon:
      I liked 98 North Street very much, particularly its corner location there on Martin Dale BUT, it felt “dated” to me, despite all that artful staging. It started out back in June, 2013 at an ill-advised $4.850M, then sat unloved and unsold for THREE AND ONE HALF YEARS! So I’d say the market must have agreed with my take.

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