Greenwich's bubble was bursting at the seems when I went shopping there for 1031 exchange deals in 2005. There were starry eyed developers building spec houses for $12 million, and newbie husband and wife developers trying to strike it rich(er) with 6,000 foot new construction McMansions featuring shoddy woodwork and sheetrock (yech!!) walls priced around $7 million. The land was worth about $3 million, the house (despite being brand new) was virtually a tear-down. I made it clear then (more than two years ago) that this market was in for a very rude awakening. As it stood, 85% of the buying was trade-ups; couples who were selling their Greenwich house and plowing the extensive cap gains into another Greenwich house. Basically, the same old ponzi scheme. Manhattan is next. Don't believe what the realtors are telling you. Yes, median numbers may still show an increase, but what you do not hear is that time on market has increased significantly from just a few days to up to a year. That is significant.
GREENWICH, Connecticut (Reuters) - There's an indoor lap pool, eight-car garage and four-store elevator. But the 26,000-sq ft (2,415-sq meter), Tuscan-style home features something even more unusual in this ritzy suburb of gated estates and mansions -- a $3 million discount on its price.
As the credit crisis started to shake global financial markets in August, the owners of the 22-acre (9-hectare) estate at 309 Taconic Road in Greenwich, Connecticut, cut their price to $19 million, showing turbulence in the U.S. housing market penetrating the wealthiest strata of American society.
"People are looking instead of buying, maybe since the second week of August," said Julianne Ward, director of fine homes at broker Prudential in Greenwich, a coastal town of 61,000 about 30 miles from New York City