Hedge Fund Homeowners Downsizing Away from their Connecticut Mansions

April 21, 2019 James Heinsman In the News

Joseph Dillaway Sawyer home “Buena Vista” Old Greenwich, Connecticut, 1900, Architect Emily Elizabeth Holman

Prices of luxury mansions continue to plummet as the number of sprawling homes floods the market in the well-known hedge fund haven of Greenwich, Connecticut.

The size homes that successfully sold decreased for a third time, bringing the median price of single-family homes down by 17% during the first quarter of 2019m from the previous year. Today the average price of a one-family home in the wealthy suburb is just $1.69 million.  The number of luxury homes grew by a whooping 68%, with 232 now on the market.

“There’s been a steady shift in the mix,” said Jonathan Miller, president of Miller Samuel. “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.”

The trend is partially fueled by the availability of more housing options for the hedge fund financial manager community. New York suburbs have become trendier and more upscale, while Manhattan is offering more condo towers than it did in the past. Sellers in Greenwich have not priced their homes competitively, which has contributed to a 25% decline in single family home sales for the first quarter of 2019, the lowest number, 74, in eight years.

Federal tax reform can also be factored in as an explanation. Deductions for state and local taxes were maxed out at $10,000. The average property-tax payout in Fairfield County, which includes Greenwich, was $10,754 in 2018. That is the eighth highest property tax in all of the USA.

A quick look at condos shows a few reasons they are more desirable these days. They are smaller, cheaper, and closer to public transit options. They were bought 33% more this year, with a median price of $681,500.

condos, Connecticut, Greenwich, single-family homes,

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