Christmas doldrums

Not much on today’s open house tour, although there are a couple of new listings I want to check out. One I don’t need to see again because it hasn’t changed since I first viewed it is 78 Doubling Road. I mention it only because it’s also on the tour today and I’m reminded that it still hasn’t sold despite being priced $2.1 million less than it sold for new in 2007. At that time, the owners paid its builder $8.6 million – today it can be yours for just $6.5. Houses like this don’t have much appeal to me but that’s solely a matter of personal taste – the house is solidly constructed, located on a great street and has a nice yard. In the past, it would have found plenty of buyers who wanted it and were willing to pay a lot of money to get it.

Obviously that’s not the case now, which speaks to the current state of the market and not this particular home.

7 Comments

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7 responses to “Christmas doldrums

  1. anonymous

    Nice house.

  2. Anonymous

    If big houses are your thing I think that is a nice example. Great location and well designed (as you commented). Another notch on the Fountain originally overpriced watch.

  3. NYC2Gwich Transplant

    What about all the properties in the sub $1.5m range? Price cuts should be taking place there to clean out that marginal inventory. Gwich is still way overpriced when compared to (relatively) nearby desirable towns.

    Anyways, that’s my $.02 since $6.5m is way too rich for my blood.

  4. Anonymous

    Dramatically lower property taxes in Greenwich help offset about half of the price differential with Westport/Darien/New Canaan/etc.–do the math to figure your total payment including mortgage and taxes

  5. Just_looking

    Also, when doing the math, remember that purchase price is fixed, but taxes will change over time.

  6. Anonymous

    Taxes are significantly higher now relative to their asking price from let’s say 2004.
    Homes were actually far more affordable in the late 90′s and early 2000′s than they are today.
    Here’s why:
    Property taxes have nearly doubled
    Energy costs have risen roughly the same amount
    For the most part, we are all making fewer dollars as a group of potential buyers.
    And instead of small down payments and loose credit, we have the opposite. 30% down minimum, plus a buffer of cash, plus stellar credit, and steady, and rising income.
    Bottom line, fewer people can acquire loans of the magnitude needed for greenwich properties.

    Think about it this way:
    1997 my friend bought their condo for 370k
    FHA loan 3.5% down ( roughly 12k )
    Taxes and common fees amounted to 7k/yr
    Monthly hit for the 3 items, 2,600 bucks
    Luckily sold it two years ago for 795,000

    That buyer needed to come up with:
    250,000 bucks down payment
    Spent 25k on renovations
    And current monthly smack down is 4,000 bucks
    (Taxes and fees nearly doubled)

    That’s a very different individual.

    Oh, and btw…current owner has an accepted offer
    And will take at least a 125k loss

    Down, down, down

    We’re still going down

  7. NYC2Gwich Transplant

    Too much inventory here was last updated in the 70′s and is still priced for the mid 2000′s. Prices will go down or properties will sit.

    A few related thoughts …
    1) am guesstimating sales volumes at these price points for Gwich vs. other towns are more favorable to “other towns”

    2) no way to prove this but am also guessing that move in is prefered these days because there is a (pick the reason) lack of credit, lack of funds to get 2nd mortgages and HELOCs for home renovations.

    3) the spring market and bonus anticipation that many are expecting is going to be disappointing.

    I see this housing market here going down. Anyone with cash isn’t going to buy crap when these days there are alternatives..

    Anyways … My $.02