Thursday, November 10, 2016

"One of America’s Richest Towns Could Be In For a Housing Market Meltdown"

From Fortune:

This July 26, 2013 aerial file photo shows the Greenwich, Conn., estate belonging to billionaire hedge fund owner Stephen Cohen. 
The uber rich should worry.
Really, really bad. That’s the current outlook for luxury housing in the United States. Right now, the supply of high-end homes is rising, demand is falling, and prices are being cut. It’s not exactly a recipe for success if you’re trying to sell your multi-million dollar home. Making matters worse, an ongoing Federal criminal investigation into wealthy home buyers across the country is scaring away skittish foreigners. All of this spells trouble ahead for shares of luxury homebuilders.

Many of these disconcerting trends are already playing out in one of the wealthiest enclaves in America. I’m of course talking about the uber-wealthy community of Greenwich, Connecticut, home to some of the richest people and most expensive homes in the world.

Greenwich’s housing market is in deep trouble. As you can see in the numbers below, there’s a staggering amount of houses sitting on the market. Here’s the breakdown by home price category:
  • $3 million to $4 million: 17 months of supply which has risen 38% over the past year
  • $4 million to $5 million: 22 months of supply, +35% over the past year
  • $5 million to $10 million: 48 months of supply, +108% over the past year