This Cos Cob listing illustrates the difficulty in even attempting to calculate current values from old asking prices. Built in 1999, the owner renovated it in 2005 and tried to sell it for $1.850, eventually dropping it to $1.565 before it expired unsold near the end of the year. In 2008 he tried again, listing it at $2.2 million. he’s now dropped it all the way down to $1.479 which, compared to it’s ask of over $2 million, looks like a significant reduction – about a third, I believe. But since it didn’t sell at $1.565 in 2005, it’s a fair assumption that it wasn’t worth that then, so its new price, while decent, doesn’t really tell us anything about what’s happening to prices.
So why bring it up? Because there are hundreds of houses in inventory with similar price histories right now and, looking over all the reductions one is tempted to think that we’ve really dropped our prices. I’m not sure we have, if I look at actual sales prices, not asking prices, and compare those to the current price. Keep dropping, is, I suppose, my point.