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In Greenwich, CT, the bedroom community of America’s hedge fund giants, the real estate market it being depressed by a lack of demand for the luxury homes on the market there. Bloomberg reports:
Homebuyers in the hedge fund haven of Greenwich are favoring smaller properties over the sprawling mansions the Connecticut town is known for.
The average size of single-family homes that sold shrank for a third time, pulling the median price down 17 percent in the first quarter from a year earlier to $1.69 million, appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate said in a report Thursday. Meanwhile, the number of luxury houses on the market jumped 68 percent to 232.
“There’s been a steady shift in the mix,” Jonathan Miller, president of Miller Samuel, said in an interview. “There’s still demand for high-end homes, but nowhere near the density of a decade or so ago. There are too many properties on the market, too many sellers, and Wall Street isn’t the driver of demand it once was.”
Read more here.
Jeremy Jones, CFA
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