Is a one-year-old new home still “new”?

That’s the question posed by the NYT’s Floyd Norris on his blog yesterday. Good question, but I wonder what Mr. Norris would think of 44 Close Road,built in 2002 and never occupied, or 21 Cornelia Drive, built in 2004 and still vacant and advertised as “new construction”. Cornelia’s builder at least has cut his price as his dreams have faded, from a preposterous $11.7 million to a still preposterous $6 million. 44 Close has defied all market signals and sticks at $10 million, perhaps hoping that we’ll get that Zimbabwe-like inflation some people (but not Paul Krugman) are worried about. Eight Copper Beech is three years old, and North Street has so many three and four-year-old houses we should start a nursing home for them. Beechcroft, Dingletown, Byfield, Baldwin Farms, Doverton, Dairy, Clapboard Ridge, Keoffram, Sound Beach Avenue and so on – aging “new” homes litter the landscape and none of them are growing more valuable – just older. Whoo boy.

7 Comments

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7 responses to “Is a one-year-old new home still “new”?

  1. anonymous

    Just like never-used “new” cars sitting on dealer lots unsold, unsold houses face similar tech obsolescence, decay of age and disuse, poss weak construction/materials quality of bubble-era builds, poss unfashionably large size/taste (or lack of taste) of bubble-era builds, etc…lots of legit reasons for hefty discounts

    Unreasonable sellers will claim “new” status and will attempt to ask price based upon their absurdly-high costs to acquire land and build during bubble

    Only takes about 18 mos to build a bespoke, new-tech house on well-chosen land; easy to do a buy vs build cost, time and value comparison

  2. Anonymous

    I have lost the search feature on your site. Are you hiding it? Essential, please advise.

    • christopherfountain

      It has gone hiding under the “About Me” link on the right (or on top of the page). I don’t know why but I’ve written to Word Press and with luck will have it back in its proper place soon. But it’s there, just click “about me”.

  3. Walt

    Is the Pope Catholic?
    If a tree falls in the woods, and no one is there, does it make any sound?
    Is selling real estate a real profession, or a made up hobby?
    Do agents use their listed houses for keg partys? This one I know the answer to, Dude.
    Remeber to flush.
    Off to lunch!!!!
    Your Pal,
    Walt

  4. Walt

    Dude -
    You are a lawyer. But hey, that is not my fault. Anyway, how the frig do I sue myself? Gotta be the Alzheimers.
    http://www.financial24.org/market/fairfield-greenwich-sued-by-fairfield-sentry-over-madoff-fees/
    Your Pal,
    Walt

  5. Walt

    And this one is really funny:
    http://vickyward.com/wordpress/archives/233

    Andres loves to talk? That is news? Give me a friggin break. The kid can gab your ear off.
    Your Pal,
    Walt

  6. Old School Grump

    Isn’t it whoppingly expensive to insure a high-dollar unoccupied residence (be it new or old)? I can’t imagine the economics of holding these houses empty for years.