High end houses = drag on the market

Speaking with another agent yesterday she wondered aloud what was going to happen to all the expensive houses for sale in Greenwich. “They just aren’t selling,” she said, “so do they drop their prices and push everything else further down or just disappear?”

I’ve written on this conundrum many times but here’s the latest news: the problem persists.

There are currently 51 single family homes for sale in Greenwich asking between $7.5 million and $11.5 million. How’s that bracket doing? here’s the breakdown for houses that either have fully executed contract or have sold via contracts entered into since September 1 of last year:

$7.5 – $9 million: 30 still for sale, 1 (one) gone to contract

$9 – $11.5 million: 21 still for sale, 1 (one) gone to contract.

Lower down but still in what I consider to be nosebleed territory, there is some life but obviously more inventory.

$4.950 – $7.5 million: 74 for sale, 10 (ten gone to contract.

That’s it for the past six months and I see no reason to believe the next six months will be better. I was berated just now by an agent/owner for not “printing positive news.” I told her, “you provide that news and I’ll report it. No word back from her so far, but maybe tomorrow?

UPDATE: a reader asked how many of these were spec houses. I can’t say with absolute certainty but sorting for all houses built 2009 and later, we get this:

$5.5 – $7.5 million: 7

$7.5 – $9 million:      2

$9.0 – $11.5 million: 4

7 Comments

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7 responses to “High end houses = drag on the market

  1. Anon

    Chris, roughly what percentage of those are spec homes?

  2. alex

    she berated you for not printing positive lies.

  3. Anonymous

    Some of those folks in the upper end price brackets probably have to sell and (unfortunately for them) they will not get anywhere near what they are currently listing for. This will put downward pressure on every category below them. We are not out of the wood yet!

  4. Anonymous

    Funny enough a lot of the home $5mil and above are tacky monsters. They really don’t offer very much in terms of amenities and fantastic upgrades. They just have gigantic rooms. I guess, ‘easier to ignore you my pretty’. Higher end homes in other luxury towns such as Beverly Hills show as if they belong in that category.

  5. Cos Cobber

    CF, according to your brother, the RE world is fine…as long as you can tow the house down to a plot south of the RR tracks in Riverside or OG.

    • New houses in those areas are doing well because there’s no inventory. Older houses aren’t. Great news for builders, not so good for those of us in older homes.

  6. Anonymous

    @Chris, it appears Gideon disagrees with your opinion on old houses too.
    He lists 20 recent sales/contracts: http://gideonfountain.wordpress.com/2012/02/29/old-doesnt-sell/