High-end to the rescue?
Beyond hard statistics like time on the market, inventory levels, and properties under agreement, which are all improving, there is another, subtle sign that the market is improving-the high-end is heating up. In the last two weeks, there have been two high-end sales, 18 Rabbit Run Road for $7,000,000 and 59 Shawkemo Road for $7,747,500, and two high-end properties went under contract, 4 Salt Marsh Road, listed at $6,500,000, and 183 Polpis Road, listed at $9,850,000. This may not seem like much of a sign, but the high-end has led the market out of the bust cycle many times before. Think of successful fund managers; other managers mimic the successful managers’ moves because the successful managers are successful for a reason-they make smart investments. Buyers who can afford high-end properties typically can afford them for a reason-they make smart investments. Does anyone remember what happened when Lou Gerstner bought 10 and 17 Berkeley Avenue in 2003?!