This is a lovely, well built house on Benjamin that neatly illustrates the rise and fall of our market. Its builder priced it when it was still under construction at $3.725 in April, 2006, $1.1 million higher than anything on Benjamin had ever fetched. As the market soared and work progressed, the builder reacted by raising it first to $3.925 and then to $4.400. I had my doubts at the time whether it was wise to pay so much more than the houses surrounding this one were worth but someone disagreed and bought it for $4.365 million in late ’06. Those buyers are now trying to sell it again, and originally priced it at about what they paid for it 2 years ago, $4.395. Today they have acknowledged that they’re facing a loss and have reduced it to $3.995. It’s a great house, but when the highest price on Benjamin, before this one, is $2.683, achieved at the height of the boom, I think these sellers will continue to confront difficulty. Again – there’s nothing at all wrong with this house, but birds of a feather and all that ….
To be honest, when this house sold for what it did back in 2006 I was reminded of an incident back in the dot com days when I went into a deli for a cup of coffee and found the counterman glued to the financial news channel, watching his investments. I told the friend I was with, “when the guy selling you coffee is buying tech stocks,you’re long past due getting out.” Some things don’t change.