I saw 23 Pierce Road in Riverside today (I wrote about it yesterday) and it’s as nice as I remember it from four-years-back – nicer, actually, because the new owners have added on a bit and spruced things up. But yeah, that’s the Thruway over there and those really are trucks you see flashing by on the bridge. Harsh bud, Dude, and welcome to the neighborhood.
Or not – you’re the one who’d be living there, not the real estate agent who sells it to you so make up your own mind. But I was impressed by how many of us were setting up appointments to show it today, tomorrow and over the weekend – I myself am showing it tomorrow. Why so much interest for a house that, last time it was for sale in 2007-2208, took 286 days to sell? Because there’s almost nothing out there in this price range (asking $2.3 million) with any charm or appeal. You can move into NoPo and pick up a builder’s special, brand new, for the same money or even a little less but you’d be north of the Post Road, on a busy street, with a design that will be dated and unattractive within a few years, unless Home Depot continues to sell the same product line.
There’s a house on Summit that lacks I-95 as part of its surround-sound set up but it does have the train tracks behind it. Same price, zero charm.
And that’s about it in Riverside – oh, I forgot: across the street from the new listing on Summit is a beautifully renovated Tudor, also priced around this one – $1.99, I believe. That is a very nice house but too small for the two different clients I showed it to. I liked it a but that still leaves just a couple of decent houses in the $2 million range in Riverside, and a lot of buyers.
What I’m wondering about is what this pent up demand will do to the market. I know of Wall Street types who, having seen what their bonuses (won’t) be this year, are shifting gears and downshifting from houses in the $3′s to houses in the $2′s. That brings more buyers into the lower range and presumably, they’ll have greater resources than those buyers who were stretching to get there, so do the $2 houses get bid up? What happens to the $3′s if they lose a number of potential buyers? I’d think their prices will fall. But a $2.1 house can never meet a $3.1 house in the middle because the difference in quality, location, etc. is too great.
Which leaves us with a ceiling on the $2′s at, say, $1.9 and, maybe, a floor for the $3′s at, what? $2.7? Unless the $3′s fall further and jus wipes out the $2′s, sending them down to $1.5 and below. Bummer, eh? The hell if I know what’s going to happen, but 2012 should be an interesting year for real estate.