Is This A Zippy Market?

1 Bramble Lane, Riverside, asking $4.295M, now has deal, my guess, closes around $4.150M. Back in June, 2008, the builder unloaded it for $4,050,000, probably thinking he’d made a narrow escape, but Riverside hung in there!. Can any other part of Town promise that kind of hold on value? List: Russ Pruner  Sell: Barbara Wells

Those who know me well, know that I don’t throw words like “zippy” around lightly. No, I understand the significance of the word, and only use it when absolutely justified. Therefore, let me state for the record that we are experiencing a ZIPPY market!

Am I aware that the dominant political party in Hartford has taken us down the road-to-ruin, to the point where our finances now resemble pathetic Puerto Rico and Illinois? Yes, I am aware. If you actually add up all the (un-payable) billions and billions and billions we owe to the municipal-union pension funds, the State of CT is already effectively bankrupt. Not pretty.

And yet… people clearly still want to live in Fairfield County. Why is this? Are they unaware of the impending doom? Do they think a (Republican) savior will emerge?

Who knows. What I do know is that last year, as of this date, we’d had 89 closings. This year, same time period, we’re up to 169 (plus another 73 pending). That’s serious improvement.

The fly-in-the-ointment *? Of course, it’s the super high-end, just 3 sales this year for $8M+. 3 sales! Now we only have to get rid of the other 68 sitting on the market and we’re home free!

So why do Greenwich sales start to dwindle down when you pass the $6M mark? The reason stated above, certainly, but added to our miserable State financial picture, there’s the State’s continuing “war on the rich”, and the very, very rich don’t have to take it. If you’re a poor schlub barely making enough to spend $5,000,000 on a home, your work probably still ties you to the New York area. But I guarantee you that the $20,000,000 buyer is not tied to the New York area. And for now, that’s who’s leaving. You might think of them as canaries in the coal mine…

 

*how often is this a problem?

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9 thoughts on “Is This A Zippy Market?

    • Jared, you young (real estate) devil!
      I dunno, I went to the FlexMLS site (brokers only), typed in ‘closings Riv/OG?CosCob/Greenwich, single-family 1/1/2016-6/4/2016″, then adjusted the dates to 2017 and voila! Try it yourself, old chum.

  1. You are absolutely correct in your analysis of the high end and the “war on the rich”. Additional factors that are negative for high end RE are the startling cultural shift by millennials away from the accumulation of assets and the work-from-anywhere impact of the internet. 10K sf homes on 4+ acres will continue to be out of favor and I see no prospect for a reversal of fortune.

    • Flee:
      My only disagreement with you is the idea of no one wanting “10,000 sq.ft. homes on 4 acres”. What I’m observing is that, when the price gets right, people still want ’em.

      • I should have stated that there will be a clearing price at some point. This will require a continuing painful adjustment.

  2. ..”a poor schlub barely making enough to spend $5.000.000 on a home”…lol…vous avez le sens de la formule…lol

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