I’ve been prowling through some of our more expensive inventory for a client and I was struck by how many houses have suffered serious, major league price reductions yet remain unsold, indicating to me that they still have room to fall. The house to the left, for instance, 1 Farwell Lane, was originally listed for $12.650 million in June, 2005 and now, after four price cuts, asks $6.495. No buyers reported yet.
54 Rock Maple (off of Stanwich) was bought new in 2002 for $5.3 million and in 2007, with no renovations worthy of noting, was returned to the market at $12.450 million. Ahem. Reality poked its wet nose into the seller’s lap and it’s now down to $6.950 million and still no one seems to think that’s a bargain.
29 Byfield, was listed just this past April for $9.495 million and dropped almost overnight to substantially below that. It sits on the market today, begging for $5.198 million. No takers.
And so on. These sellers and many like them missed a hot market by pricing themselves out of it and are now chasing a falling knife. That must hurt.