I’ve been surprised, and have mentioned it here, that most of the dead inventory between $4 and $10 million has pretty much stayed pat, refusing to acknowledge that there’s a problem with finding buyers in that price range. That’s been changing during the past few weeks and we’re beginning to see some movement. Of course, this will prove interesting when a $5 million house slides down to the next bracket $1 million lower – what happens to the prices of houses already there? In many instances, probably nothing because the $5 million house was never worth what the owner was asking and is really just becoming a bit more realistically priced. But there will be some houses that will look like a much better value than those they’re joining and when that happens, the dominoes start toppling.
I have no opinion on the value of the 2007 house at 37 North Porchuck Road but note that today it was reduced from its original price of $5.495 million to $4.295. That keeps up, another sale like 822 North street that sold for $1 million less than its 2002 price and we’re in for some interesting times.