Price drops?

5 Station Drive

5 Station Drive

This Cos Cob listing illustrates the difficulty in even attempting to calculate current values from old asking prices. Built in 1999, the owner renovated it in 2005 and tried to sell it for $1.850, eventually dropping it to $1.565 before it expired unsold near the end of the year. In 2008 he tried again, listing it at $2.2 million. he’s now dropped it all the way down to $1.479 which, compared to it’s ask of over $2 million, looks like a significant reduction – about a third, I believe. But since it didn’t sell at $1.565 in 2005, it’s a fair assumption that it wasn’t worth that then, so its new price, while decent, doesn’t really tell us anything about what’s happening to prices.

So why bring it up? Because there are hundreds of houses in inventory with similar price histories right now and, looking over all the reductions one is tempted to think that we’ve really dropped our prices. I’m not sure we have, if I look at actual sales prices, not asking prices, and compare those to the current price. Keep dropping, is, I suppose, my point.

4 Comments

Filed under Uncategorized

4 responses to “Price drops?

  1. anonymous

    Seems like many sellers forget to calculate their own opportunity costs of such irrational ask pricing

    And many savvy prospective buyers see irrational seller ask pricing patterns and avoid entering any negotiations w/such parties, as most such buyers also consider their opportunity costs

  2. Dan

    One major point that makes this property a real stretch is the fact that it sits right across from the train tracks. I’m not a realtor, but I would think that 80% of buyers straight-up wouldn’t look there because (at least for me) there wouldn’t be a price at which I would live looking directly at metro-north train tracks.
    Stretch with a great property – not an impaired one. This seller is really fooling himself.

  3. hunkereddown

    Article on Jumbo mortgages. Interesting to see the impact on buyers in Greenwich, if any ,and owners trying to refinance for that matter.

    ‘Jumbo’ Mortgages Still Costly—And Harder to Get

    http://www.cnbc.com/id/29836875

  4. Cos Cobber

    I just refinanced my jumbo. I feared the appraisal, but it turned out fine. So the system is alive despite what the media says my friends. Just bring a good fico score.