Price reductions!
Some readers tell me they find this topic boring. I think it illustrates two things: the danger of overpricing your house to begin with; and what's happening to the market. Those who disagree are urged to skip this post and come back later.
42 Richmond Hill Road. original price $15.9 million; as of today, $9.950 - 37.5% off. Remember, if the first price is ridiculous, a huge price reduction is not necessarily an indication of how much the market has dropped. Still, someone must have received a pretty hefty dose of reality out there on Richmond Hill.
45 Baldwin Farms South. Original price last January, $9.750. Today, $6.450; 34% drop.
38 Khakum Woods, land. Original price $8.5, today, $5.5; 35% drop. The pretty house pictured above is an artist's idea of what a house might look like, if it were built. As it is, you get a foundation only. Considering that the current seller paid $4.8 million for the lot in May, 2005, in a stronger market, I'm not sure that's enough.
There were another 17 price changes reported today, but these were the most interesting.
Update: Zillow.com
If you believe Zillow, 45 Baldwin Farms should be worth only $4.694 million but if I were the builder I wouldn't despair: Zillow has him in Glenville, rather than off Round Hill Road, and uses houses on such desireable spots as Thunder Mountain Road to compare value. Bah, humbug. Its possible that in this market their pessimism might just prove out, but I'd be more confident in their calculations if they got the location right.
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6 comments:
Another fault of Zillow is that it often indicates "local schools" in districts outside Greenwich.
Hi Chris - This topic is hardly boring...it is highly relevant for all of us Greenwich homeowners. I am guessing these prices will keep dropping. Is anything selling at all?? It seems hard to believe anyone would be going to contract in this environment (even with the market up yesterday, there's still SO much uncertainty).
Just a thought on Zillow - as you said, it doesn't take into consideration the location of a home, beyond the general neighborhood. (ie. Baldwin Farms is the same as Thunder Mountain)Secondly, if there have been major renovations done on a home recently, Zillow does not take that into account at all. Lastly, all houses are treated equally based on square footage, # of bedrooms and bathrooms and acreage. So Zillow doesn't factor in whether a house has tiny rooms, 8 foot ceilings and a 70's kitchen, or whether it has been completely redone with brand new kitchen and baths. It's great to use as a benchmark or comparison, but it is very flawed. The coolest part of Zillow is using the bird-eye view feature to see what else is around the house.
Keep up your great blogging!
The answer is: "Some readers tell me they find this topic boring."
What are "current homeowners or people with their heads in the sand" the Jeopardy contestant responded to Alex Trebek.
Retired IB'er
Keep posting Chris - it is all positive - we all learn some-thing - and I find all the posts - very interesting.
Chris - I thought your overview of these topics was the primary purpose of this blog - I think you do an exceptional job covering the happenings in the Greenwich real estate market, and I would encourage you to please do even more of it. This is a great site because of your insight.
I agree that you should continue to focus on the Real Estate Market. It's interesting to note that your posts about Real Estate and builders seem to get more reader comments than posts on other subjects.
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