It was only a matter of time before the financial meltdown started trickling down to the Greenwich real-estate market. Former Citigroup head, Chuck Prince, already had trouble selling his house this summer and was forced to settle for 15 per cent less than he originally wanted when he was finally able to unload it in August.
Home prices throughout Greenwich experienced their largest year-over-year decline in more than 30 years last year. Meanwhile, the number of houses sold dropped by a third.
Bloomberg: The median home price in America’s hedge-fund capital dropped 7 per cent to $1.95 million in 2008 from a year earlier. The number of single-family houses sold fell to 460 from 726 a year earlier, broker Prudential Connecticut Realty said.
“We are directly affected by the financial world,” said John W.M. Cooke, the Prudential broker who tracks the data. “And that’s suffering. So that was the biggest factor in our house sales last year.”…
The top end of the Greenwich market showed the biggest drop in transactions, Prudential said. Sales of houses priced at more than $5 million fell by more than half, with 53 trading hands, down from 113 in 2007.
Sales of Greenwich homes priced at less than $2 million dropped 31 per cent, and sales of houses valued more than $2 million declined 42 per cent, Prudential said.
But it’s not all bad news, sales of properties priced below $600,000 were actually up year-over-year. Still, if you’re a disgraced financier, like Dick Fuld (whose house—not for sale, as far as we know—is pictured above), looking to get some equity out of your Greenwich mansion, now might not be the best time.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.