(Clouds, trees and house all fake, but you get the idea)
Riverside is either in the biggest bubble of its history or the demand for new construction is huge and almost-unquenchable (which doesn’t rule out bubble-bursting in the future, of course). Latest example, reported today, is 11 Pinecrest Road, our not-at-all-lamented former FAR Czar Franklin Bloomer’s place, priced at $5.350 million and under contract before it’s even finished. Holy cow.
If this keeps up, and anything that can’t keep up, won’t, the disconnect between existing houses and new should result in every house in Riverside built before 2005 being torn down and replaced. Certainly the profit incentive is here: the builder of this one, Kaali-Nagy, paid just $1.5 for this 0.46 acre of land. Add maybe $15,000 to raze Bloomer’s house (and for all I know, his disgruntled constituents may have volunteered to do that for free), spend what, $1,800,000 to build and sell for $5.4? My heavens.
Can you tell me who the buyers of these homes are? Are these new people moving to Riverside from NYC? Current Greenwich homeowners moving up? Are they in finance? Overseas transplants? If you think it is a bubble, then it is generally driven by one “type” of buyer, and it doesn’t stop until that buying group rolls over (which is why I’m asking the question).
everyone in town can thank you chris for doing a great job of hyping up riverside. now everyone has a hard on… bubble part II
I think your presumptions on build costs are maybe a touch low. obviously depends on what kind of details are included – but a high end job would be much higher.
I’m sure you’re right
$1.8 million just to build (not including land)? You got to be kidding: it’s just simple wood frame construction. See Wood Frame House Construction: it’s simple anyone can do it: http://www.amazon.ca/Wood-Frame-House-Construction-L-Anderson/dp/0934041741
What, are the 2X4s made out of solid gold or something?
The cost is in the finishes, not the 2×4′s
AJ posts sometime read as if he’s the Rip Van Winkle of OG. ..been alseep for 30 years, remembers the town very well, but recognizes none of the changes post 197X…
kaalinagy spends alot of money on the details in their homes. the finish work makes all the difference
I’ve tried to provide facts over the past year about the multi-decade low in homebuyer cost/ multi-decade high in home affordability. Apparently facts are not enough. Another set of facts is that nationally Wall Street types make up LESS THAN 5% of the entire population of 1%-ers…Lastly, although 9% of our population is jobless, and upwards of 20% if we include underemployed, jobseeker drop-outs and another 4% of “hidden potential labor”, less than 5% of college degree baring folks are in the employment penalty box. Add it all together and it spells housing bottom. The new stuff, due to a SEVERS shortage, will always find interest, and most likely bids at an inflated level. This is the nature of shortages. I’m curious as to how many folks back in 1979-1981 thought the world was coming to an end, equities were stupid, and that no one would ever be able to finance a hoem again. We are probably not at THE bottom of our bad economic times, but we are getting closer.
wood frame, permissions (getting more expensive unfort) hvac, av, trim, plumbing, landscaping, lighting, ……..the list goes on. Its def cheaper to buy anothers mistake in a diff part of town….
Kudos for the builders. They are laughing all the way to the bank right now.
Kaali-Nagy builds a beautiful house. I wish I had the $$$ to afford one.
Pop a modular in, finishes arent that expensive
So correct me if I am wrong but didn’t a Kaali Nagi buy something recently in belle haven and just sell it even more recently , we are talking weeks apart, in belle haven? And make a huge profit?
Not for you, perhaps but then,not every likes Ikea and Home Depot’s taste.
Cos cobber you’ve got it about right. I haven’t lived in Greenwich in a very long time, and until I stumbled on CFs blog while googling Fairfield Greenwich and Madoff, had absolutely no interest in Greenwich at all.
A tidy ~2M profit. Land values in Riverside will for sure go up. Simple supply and demand as builders compete for land. Fine by me. Looks like the good times are here again.
@AJ, I hope you’ll stick around and keep posting your old time memories, I find them highly entertaining and this blog has lost a couple of old timers in the last few years who provided some of the background you’ve started to add. Kudos to you!
RIP, Back Country Gal and IDAHO.