Price cut

422 N. Maple Avenue, purchased for $4.850 million in 2013 and resisted at $4.750 this past April, has cut its price today to $4.295. That’s not a huge loss, yet, but it also hasn’t sold yet. Stay tuned.

The purchase date of 2013 is significant, to me, because that was the year that many of us thought we sensed a leveling off of the 2008-2011 price collapse, and believed that we’d hit bottom. Instead, prices have continued to drop, as this house illustrates.

Charles Hugh Smith has some observations on the decline of affluent urban centers; this paragraph seems applicable to our own market:

The Kubler-Ross dynamic is in full display, as sellers go through the stages of denial, anger, bargaining and acceptance: they grudgingly drop the price of the $1.2 million bungalow or flat to $1.15 million, then after much anger and anguish, to $1.1 million, but the market has imploded while they processed a reversal they didn't think possible: now sales have dried up, and prices are sub-$800,000 while they ponder dropping their asking price to $995,000.