Price cuts

Three this morning.

61 Sumner Road, $3.2 million cut to $3.1. Not a crazy price but a contemporary this far north, with a master bedroom on one floor and the rest upstairs (with one in the basement) rules out families with young children and the lack of a pool makes for a dull weekend adult retreat, so what’s the market? We’ll find out eventually.

55 Birch Rd

55 Birch Lane

55 Birch Lane, $5.295 to $4.795 million. That’s a substantial cut but it’s still a 70s style house, albeit renovated, and at least from what I’ve seen of current listings in this price range, there are other houses to consider.

75 Clapboard Ridge Road, $13.950 (2007), now asking $10.350 million. My inclination is to refer the reader to the post immediately below this one, but that would be cruel.

11 Comments

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11 responses to “Price cuts

  1. ShedLessToolMan

    We should open up a betting pool.. or at least a numbers market for selling price and days on market.. I have seen the place on sumner and no way it ever sells with a 3 in front of the price.. mostly for the reasons you pointed out and it is rather underwhelming.. It has already been sitting as both for sale and for rent.. so, I would go with in total real days 1129 on market and a final sale price when reality sets in of $2,550,000.

    I know the “new Normal” guy will say the market is on fire and it is worth $4 million and others will say there are not many fox sightings in back country similar to riverside.. but, that is my final answer

  2. The New Normal

    what a great idea – I am sure you will get tons of interest to participate, really

  3. Atticus

    But is this the “new normal”

    The 20 year Japanese bear market in real estate is making its way to the United States. Home prices in the U.S. are now in a double-dip and have gone back 8 years. Lower paying jobs, higher expenses, shadow inventory, and big government spending all align with a path of real estate malaise.

    http://www.doctorhousingbubble.com/japanese-real-estate-bubble-bear-market-in-real-estate-is-making-its-way-to-the-united-states/

    • The New Normal

      besides contradicting yourself often, you seem to be suffering from confirmation bias

      do you only look for and read articles that confirm your untimely (and stagnant) view of the world?

      1) the article was written in early 2011
      2) the US Fed and Federal Govt response to the financial crisis was almost completely opposite to that of Japan, and it is probably not crazy to expect that the resulting outcomes should be different (Japan is just now committing to the same reflationary policies, more than 20 years after the crash, that we put in place day 1)
      3) just for arguments sake, the Nikkei is still DOWN 72% from it’s peak; the S&P 500 is just about back to its all-time high

      • ShedLessToolMan

        oh snap.. I think new normal got you there.. our monetary policies are vastly different than Japan.. look at consumer habits over there.. the savings rates are insane.. what you really need for a real estate boom is inflation my friend.. a government that borrows money and then prints more and makes all prices rise on a time line.. hence prices only go up in the future.. sure, there are sell-offs, corrections and even dips but, on a long enough time line the direction will be up.. I think atticus is missing the ball on this one a little bit.. but, again there is magnitude and timing.. and these listings above may be a bit premature for irrational exuberance..

      • Atticus

        >>Japan is just now committing to the same reflationary policies, more than 20 years after the crash, that we put in place day 1)<<

        Wow, that's a whopper, considering Japan has had failed reinflationary policies for decades. That's how they got the highest public debt to GDP ratio in the world. We have been emulating their failure.

        The housing market is very abnormal, supported by massive intervention. It is not a healthy market.

        Robert Schiller:

        "“It’s a good housing market in the sense that mortgage rates are very low and prices have come down to normal levels, so yes, it’s a good time to buy if nothing bad happens,” Shiller said. “But it’s also a very bad housing market in that most of the mortgages are being supported by the government, and we have the Fed and this buying program. It’s a very abnormal market. There’s a lot of uncertainty going forward.”

        http://www.nj.com/business/index.ssf/2013/01/shiller_housing_market_comebac.html

        • The New Normal

          look at Japan’s historical currency exchange rate and inflation rates and compare them to the US the last 4 years, then tell me if their reflationary policies were successful

          it is only recently after Shinzo Abe got elected and promised to print unlimited Yen (similar to helicopter Ben Bernanke) that their markets started reacting

          the USD has been depreciating and we have had inflation, signs that US monetary policy is actually working in preventing the deflation that has ailed Japan for over 2 decades

          try using history as a guide, instead of misinterpreting the sound bites of talking heads to fit your paradigm; the Fed has basically said they will not allow deflation to occur – sounds to me like eventually the opposite (runaway inflation) is destined to happen unless they time taking away the punch bowl at the exact appropriate time – kind of like that last drink at the bar that seemed like such a good idea at the time; in that situation, owning hard assets and being short bonds (mortgage) sounds good to me

  4. Brown Eyed Girl

    That Clapboard Ridge price is crazy, just crazy. Who’s the listing broker?? Someone with wealthy foreign connections, I hope.

    • The Clapboard Ridge home is beautiful and would be a wonderful place to live, but at that price, I wish they’d managed to keep more of its original acreage. Set that house on, say, 1o acres (25 would be better) and the price would seem a bargain. As it is, I think it’s steep and, more relevant, so do actual buyers.

  5. Must be missing something...

    I am afraid that I agree about Sumner, there is not a chance that they are getting a dollar over $2.2. If they get real quick they might be able to do better than that.

  6. Jane

    Agree on the beauty of 75 Clapboard inside. A great house with good flow and generous (but not too large) rooms. And in very good, move in ready condition.