Market Restraint?

23 Smith Road, Greenwich, First ask $39.5M. Sells for $29.9M. Looks idyllic, no? Even better in real life! Reportedly bought by a neighbor, will be torn down. Either way, the price makes sense. List: Sally Maloney. Sell: Tamar Lurie

All great economic catastrophes are caused by government bungling, intrusion, or, in the case of communist takeovers, outright attack. So what’s going to cause the next great disaster in the US economy? It’s happening right now, before your wondering eyes! It’s the printing and dumping of trillions and trillions of dollars into an already surging economy.

Businesses, desperate to get back to normal, are discovering there’s no one to hire because the massive distribution of checks, sent to citizens (and non-citizens) all across the country, has literally stopped employment in its tracks. Millions of people, officially “unemployed” are paid by Washington to stay home and remain unemployed.

The economy-distorting effects are everywhere: help-wanted signs in front of retail shops go unanswered, factories can’t produce goods and trucking companies can’t deliver goods that do somehow manage to get made. Lumber mills, paper producers,oil drillers,farmers, landscapers, everyone is in search of labor and can’t find it.

This is good news for wages, they are rising, at least temporarily, but for small businesses, finally emerging from the covid-19 nightmare? This will be the end. They can’t afford to pay $25+/hour for labor. The winners will be, who else? Big businesses!

Anyway, while we wait for the economy to return to Jimmy Carter-style 1970’s level inflation, unemployment, and high interest rates, Greenwich real estate continues to chug along nicely! Asset bubble? What asset bubble? Here are some examples of what I would call “market restraint” and, to me, they are proof that, in Greenwich, at least, things are not quite out of control, not yet.

59 Mooreland Road, Greenwich. First ask $11.5M. Sells for $8.5M. Owner paid $9.495M in 2004, added millions in improvements, a truly great deal for the buyers, who are moving from Riverside. List: Brian Milton. Sell: Kim Ferraro Arguimbau.
549 North Street, Greenwich. First ask $12.5M. Sells for $6.975M. Great house, great property, for some reason, the seller kept it on the market for 16 years, possibly turning down better offers along the way? Oh, well. List: Shelly Tretter Lynch Sell: Christine Danforth.
65 Clapboard Ridge, Greenwich. First ask $12.495M. Sells for $7.495M. This one only took 6 years, and yeah, likely turned down better offers. A helluva lot of house for the money! List: Ellen Mosher Sell: BK Bates.

The Greenwich market is very strong right now, we still have bidding wars breaking out here and there, but the four examples above, plus plenty of others, show that you don’t necessarily have to overpay. Buy smart!

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