Put this in your database and smoke it!

30 Owenoke

30 Owenoke

There have been so few sales recently that it’s almost impossible to say with certainty what’s happened to the market (other than dropped dead, of course). Still, we’re beginning to get some sales reported that allow at least a hazy view of what’s going on. I mentioned last week that 7 Dandy Drive, new construction, sold for $1.850 million, $650,000 less than the almost identical house next door sold for in 2007. The house shown above on Riverside’s Owenoke sold Friday for $2.3 million (I speculated Friday that it might have sold for under $2, so Riverside homeowners can now breath a bit easier). Its history is illuminating. Listed in the winter of 2006 for $3.450 million it sold that June for $2.950. In July, 2008 it was put up for sale again, untouched, for $2.995 and, as noted, finally sold for $2.3. That’s a 22% drop from its 2006 sales price.

6 Wyngate may offer some useful data but I’ve heard that it was purchased by a corporate relocation company which, if true, means we’ll have to wait until that relo sells it again to get its true value. Regardless, it sold in 2004 for $2.3 million in 2004, was put back on the market with a claim that it had been “renovated” in 2005, a claim that is undercut by the additional information that a plot plan and plans for a new house were available – I mean, who puts much money into a renovation if the house is being replaced? But it too sold Friday, for $2.195. That’s an insignificant loss, but would seem to indicate that this particular house has dropped just a tad below its 2004 value. The joker in the deck, however, remains the identity of the buyer. We’ll see.

8 Comments

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8 responses to “Put this in your database and smoke it!

  1. Foxton

    What ever happened to that company 5 yrs ago had ads for a flat 3% commission? I don’t see much about it anymore? Please reply.

    • christopherfountain

      I think they went belly up, Foxtron. It turned out not to be much of a deal because for that 3% you didn’t get much. If you wanted any services, it cost extra and, at least the houses I saw that they listed, they usually used inexperienced agents who didn’t seem to know what they were doing.
      But I’m not sure of any of this, other than they pulled up stakes in Greenwich. They may be flourishing in other parts of the country, who knows?

  2. Retired IB'er

    Chris,

    How did these reported closed prices compare to your quick and dirty valuation metric of assessed values?

    • christopherfountain

      No correlation at all, IB’r, which is why quick and dirty valuation metrics can’t be applied mindlessly. But there is one interesting thing: both houses sold for $2.2 – $2.3, and the 2005 assessed value for each was $1.577 and $1.573 so they’re quite close in that regard. But way above that assessed value, obviously.

  3. South of Village

    Town assessed 30 Owenoke’s value at $2.2 million in 2005. So trading above 2005 levels….???

    • christopherfountain

      Houses were selling well above assessed value back then, South* so I wouldn’t get too exercised. Value remains what a willing buyer and willing seller agree to in an arms-length transaction so we know that the house was “worth'” $2.950 in June of ’06 (right about when those ’05 assessment values would have been published) and was worth $2.3 million last week.

      Can’t tell anything from reductions in asking prices because those have been nuts for years, but a sale’s a sale, unless, as in Wyngate, maybe it isn’t.
      * Just checked stats. Riverside was selling for 2.09 assessed value in 2006 so, that’s $3.218 million. ($2.2 mkt. x 70% = assessed, X 2.09)

  4. Retired IB'er

    Chris wrote: “Just checked stats. Riverside was selling for 2.09 assessed value in 2006 so, that’s $3.218 million. ($2.2 mkt. x 70% = assessed, X 2.09)”

    You lost me. Translation?

    • christopherfountain

      What I was trying to say, I think, IB’r, is that the town set the market value of the house at $2.2 in 2005, which made its assessed value (calculated at 70% of market – I don’t know why) $1.54 million. In 2006, the year Owenoke sold, Riverside houses sold, on average, for 2.09 X the assessed value so, had this house sold at that rate, it would have sold for 2.09 X $1.54 or $3.218 million. The guy saved a fortune, only to lose it three years later. Such is the law of averages, I guess.