This house was sold as a shell for $902,000 in December 2003. The buyer gutted it, renovated it and resold it seven months later in July, 2004 for $1.775 million. That buyer sold it in August ’07 for $1.925 and now it’s been placed back up for sale, first at $1.850 and, today, for $1.745 – below its 2004 price. I, of course, take full responsibility for this unhappy result. If only I didn’t write about falling prices buyers would not only be paying 2007 prices they’d be happy to pay even more, all for the privilege of living in Greenwich.
I knew about the power of this blog, naturally, but even I was surprised to see that I’ve infected our new president with my pessimism. Here is what he said yesterday,which should do nothing to help the current climate of fear. Had he not read this blog, we could have expected a sunny prediction of good times to come:
And if there’s anyone out there who still doesn’t believe this constitutes a full-blown crisis, I suggest speaking to one of the millions of Americans whose lives have been turned upside-down because they don’t know where their next paycheck is coming from.
That’s scary enough but the man continued with this bit of economic wisdom that really alarmed me.
It is only government that can break the vicious cycle, where lost jobs lead to people spending less money, which leads to even more layoffs. And breaking that cycle is exactly what the plan that’s moving through Congress is designed to do.
I know that I attended the University of Connecticut Law School while our president’s degree is from Harvard, but somehow I seemed to have learned a little economics along the way while his career as a community organizer seems to have closed off that path of learning. Too bad for all of us. Would you go out and buy a house today with an expectation that its value would remain steady or increase in the coming year? I wouldn’t.