March 12, 2004
The Spring Market Arrives
Sales activity has actually been heated since the fall, with just a brief respite over the Christmas holiday, but it switched into hyper-drive the past two weeks. During the past ten days forty-two houses went to contract, including some at the upper end of the price range: 36 Husted Lane, $8,950,000; 70 Midwood Drive, $7,750,000; 94 Doubling Road, $6,995,000; 22 Dewart Road, $6,890,000; and 18 Pinecroft, $6,500,000. Wall Street obviously had a good year. There were also forty-four price reductions, which I think is a good sign of sellers’ good sense. One hundred and nineteen new listings came on, in all price ranges, with many of them already included in the “gone to contract” category. Some of this activity was caused by the release of admissions decisions by private schools, both here and in New York City. Those families in the city whose child’s genius was overlooked by Miss Smithington’s School for Young Rulers want better schools than are offered by the City of New York and so they flow out from there into the suburbs. A similar relocation also occurs here in town each spring, as parents either shift closer, say, to Greenwich Academy, or move their rejected offspring nearer to what they perceive to be the “better” public schools. I am told that, notwithstanding nearly identical test scores for all our schools, many such parents are drawn to Old Greenwich and Riverside. As a resident of Riverside I am tempted to say that we don’t want your losers but that’s not true; welcome to the eastern side of town.
Speaking of Riverside
Michael Dinneen has a good house for sale at 70 Winthrop Drive, a quiet neighborhood that’s an excellent place to raise a family. This house was built in 1976 with a new kitchen finished just this year. Five bedrooms, a huge, walk-out basement and great views of Binney Park. A year ago, I’d have considered this house well priced at $1,350,000. This year, its asking price of $1,699,000 seems entirely justified and I expect it to be gone within a week.
Other Activity
Bidding wars continue. Jeff Bell’s listing at 107 Overlook Drive in Milbrook came on the market at $1,299,000 and received, I hear, five sealed bids all for more (probably much more) than the asking price. This was a classic Milbrook Tudor, with nicely proportioned rooms, plenty of light and a good yard. As its price reflected, it will require a lot of work to bring it up to date, starting with some jack work to restore it to level, then new wiring, baths, a kitchen and on and on. But when finished, its new owners will have a beautiful house worth a lot more than whatever they’ve put into it. I am a little surprised that there is such demand for a project house, even one in Milbrook; I suppose it is a reflection of how few good houses are out there on the market.
Gold Star
Reader Frank Farricker has ably answered my question as to whether the $500,000 capital gains exemption granted married homeowners is also available to LLCs. It is not. Mr. Farricker points out, however, that LLCs are ideally suited for employing 1031 exchanges—if you have to ask what those are, then it’s probably not a tax strategy you want to employ. The process involves meticulous record keeping and lots of paperwork—not my strong points, so I’ll leave this option to others.
High Society
A generous friend recently gave me the opportunity to attend one of the dinner dance fund raising events that seem to dominate our town’s social calendar. It is telling sign of my own prominence in that world that this was the first such event I have ever attended, and I traipsed off to the ballroom in my scuffed shoes and best Greenwich Hospital Thrift Store blazer with hopes of an entertaining evening of brilliant conversation around the dinner table. Those hopes were dashed as soon as the band struck up, drowning all but the loudest shouts under a cacophonous wave of sound. My brother Gideon, who does this sort of thing frequently (why?), informs me that all these dinners employ the same noisy strategy. He had no explanation for the phenomenon, and I certainly don’t: are the sponsors really that worried that people will have nothing to say to each other? Is a false sense of excitement created when guests must shout at each other when they’re out together dancing cheek to cheek? Inquiring minds want to know.
Sales activity has actually been heated since the fall, with just a brief respite over the Christmas holiday, but it switched into hyper-drive the past two weeks. During the past ten days forty-two houses went to contract, including some at the upper end of the price range: 36 Husted Lane, $8,950,000; 70 Midwood Drive, $7,750,000; 94 Doubling Road, $6,995,000; 22 Dewart Road, $6,890,000; and 18 Pinecroft, $6,500,000. Wall Street obviously had a good year. There were also forty-four price reductions, which I think is a good sign of sellers’ good sense. One hundred and nineteen new listings came on, in all price ranges, with many of them already included in the “gone to contract” category. Some of this activity was caused by the release of admissions decisions by private schools, both here and in New York City. Those families in the city whose child’s genius was overlooked by Miss Smithington’s School for Young Rulers want better schools than are offered by the City of New York and so they flow out from there into the suburbs. A similar relocation also occurs here in town each spring, as parents either shift closer, say, to Greenwich Academy, or move their rejected offspring nearer to what they perceive to be the “better” public schools. I am told that, notwithstanding nearly identical test scores for all our schools, many such parents are drawn to Old Greenwich and Riverside. As a resident of Riverside I am tempted to say that we don’t want your losers but that’s not true; welcome to the eastern side of town.
Speaking of Riverside
Michael Dinneen has a good house for sale at 70 Winthrop Drive, a quiet neighborhood that’s an excellent place to raise a family. This house was built in 1976 with a new kitchen finished just this year. Five bedrooms, a huge, walk-out basement and great views of Binney Park. A year ago, I’d have considered this house well priced at $1,350,000. This year, its asking price of $1,699,000 seems entirely justified and I expect it to be gone within a week.
Other Activity
Bidding wars continue. Jeff Bell’s listing at 107 Overlook Drive in Milbrook came on the market at $1,299,000 and received, I hear, five sealed bids all for more (probably much more) than the asking price. This was a classic Milbrook Tudor, with nicely proportioned rooms, plenty of light and a good yard. As its price reflected, it will require a lot of work to bring it up to date, starting with some jack work to restore it to level, then new wiring, baths, a kitchen and on and on. But when finished, its new owners will have a beautiful house worth a lot more than whatever they’ve put into it. I am a little surprised that there is such demand for a project house, even one in Milbrook; I suppose it is a reflection of how few good houses are out there on the market.
Gold Star
Reader Frank Farricker has ably answered my question as to whether the $500,000 capital gains exemption granted married homeowners is also available to LLCs. It is not. Mr. Farricker points out, however, that LLCs are ideally suited for employing 1031 exchanges—if you have to ask what those are, then it’s probably not a tax strategy you want to employ. The process involves meticulous record keeping and lots of paperwork—not my strong points, so I’ll leave this option to others.
High Society
A generous friend recently gave me the opportunity to attend one of the dinner dance fund raising events that seem to dominate our town’s social calendar. It is telling sign of my own prominence in that world that this was the first such event I have ever attended, and I traipsed off to the ballroom in my scuffed shoes and best Greenwich Hospital Thrift Store blazer with hopes of an entertaining evening of brilliant conversation around the dinner table. Those hopes were dashed as soon as the band struck up, drowning all but the loudest shouts under a cacophonous wave of sound. My brother Gideon, who does this sort of thing frequently (why?), informs me that all these dinners employ the same noisy strategy. He had no explanation for the phenomenon, and I certainly don’t: are the sponsors really that worried that people will have nothing to say to each other? Is a false sense of excitement created when guests must shout at each other when they’re out together dancing cheek to cheek? Inquiring minds want to know.
posted by Chris Fountain at 8:48 AM
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