Ken Edwards, real estate columnist for the Greenwich Citizen (they don’t put him on line so no link) reports that our colleague Gary Silberberg has prepared a statistical analysis proving that Greenwich real estate is a whiz-bang investment. According to Silberberg according to Edwards, the average Greenwich home price is up 5% over 2006. Wow, that’s great!
Except it’s hogwash of the highest order. Show me house that was purchased in 2006 and sold this year and I’ll show you a homeowner who lost money, and I don’t care what Gary’s statistics say. Gary himself has had a spec house on the market since he built it in 2005. When, after a year or so, it still hadn’t sold he raised its price. I teased him about that and he responded by sending me pages of statistics “proving” that. per square foot, his house was the best value on the market and was actually worth more than he was asking for it. “If all that’s true, Gary,” I asked, “how come it hasn’t sold?” That was in 2006 – you can still find it for sale, although he has since dropped its price.
I like Gary and appreciate his trying to put a good face on things but if he convinces sellers that the only problem, is, as he claims, “buyer skittishness” rather than the prices of our inventory of unsold houses he’ll just have helped prolong this moribund market. Or so I think. Gary Silberberg, obviously, disagrees.