We're still working off the irrational exuberance of Greenwich's housing market from 2006-2007

21 knollwood.jpg

21 Knollwood Drive (off Husted) on the market since last June, has cut its price from an original $3.495 million to $3.150. That's still a hefty sum, for a perfectly nice, plain-vanilla structure, but the owners paid $3.900 for it back in March, 2007 (on an initial 2006 asking price, of $4.500). I can't claim credit for using that sale to predict the imminent collapse of the market, but I did quote Herbert Stein when houses like this were selling for seemingly-impossible prices: "What can't continue, won't".

I don't know what the proper price of this house will eventually prove to be, but I'm not expecting to see a bidding war break out that will boost its value back to that 2007 level; not in the near future, anyway.