With Summer starting to inch closer, we’ll be more closely following the scene out in the Hamptons, which promises to be wildly different than seasons past. This weekend’s Spring edition of the NYT Key Magazine was themed, fittingly, Post Bubble New York, and it includes a piece on how difficult it is to move expensive homes on the market.
One important update: Ex-Lehman COO still can’t unload his $32.5 million mansion out there, so will probably be renting come this summer.
And amusingly enough, John Paulson, the hedge fund manager that’s done a fantastic job timing the market, has had a rough time unloading his old $19.5 million place, and has had to chop $5 million off the asking price. (He can afford it. He could probably afford to just raze the damn thing if he wanted).
Actually, most telling, is an anecdote about a couple who purchased a home for $1.65 million in 2006, who tried selling it recently for $2.2 million. Nobody bit and they’ve been steadily dropping the price back down to where they’d merely be breakeven. We’re guessing they’ll have to cut further, since there’s no reason to think that inflated 2006 prices are market-rate anymore. But there’s something about the housing mentality that no matter the market conditions, people still think they should make a profit, or at least get their money back.
Once sellers finally give in though, watch out below.