November 7, 2011

Luxury homes starting to bomb, too

Business Insider - It's getting ugly along the manicured lawns of Greenwich, Connecticut, says the New York Post.

According to a report by Prudential Connecticut Realty in Greenwich, the number of homes worth $8 million or more that simply won't sell off the market recently jumped up by one third. Of those houses, 10% were built on spec.

The word is that the market is being glutted by out of work hedge funders trying to sell their assets and leave town.

“They’re even turning back leases on their luxury cars because they can’t afford those, either,” said Gary Cheeler, an investor and adviser to the hedge fund industry...

The Post says that after one former hedge-funder had his $11 million home foreclosed on, he packed up his entire life and moved to California.

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