880 Jobs Lost = How Many Houses for Sale?

The local paper writes that 880 Greenwich residents lost their jobs during 2008. The prospects are that the worst is ahead and the town will see accelerating unemployment through the end of the year, according to a Yale economist and CT Dept of Labor researcher quoted in the article.

So how many properties will be put on the market to be sold as residents deal with these new financial constraints? And who will buy them? Who knows, but more inventory will certainly increase leverage for buyers and reduce it for sellers.

So far this year, 25 residential properties (single family and condominiums) sold. That leaves about 600 single family homes and the 200-odd condominium units on the market. Talk about a growing imbalance in supply and demand. I expect the rate of property price declines will pick-up dramatically over the coming months.

Greenwich Commercial Property: Another Shoe to Drop?

Based on my trips around town, there is a rapidly growing quantity of vacant retail and office space in Greenwich. Here are pictures I took this morning. I could have taken many more. But there were too many vacant spaces and the drivers behind me did not appreciate my slow driving.

As a property owner or prospective property owner in town, I would be alert to how the deteriorating commercial market, in conjunction with plummeting residential sales, will impact the Town budget and property taxes. It would seem to me that the forward buget shortfall could easily be a multiple of the $8mln shortfall in the 2009/2010 Town budget. In hindsight the "tough choices" Town officials made to close that gap may look like childs play when the Town gets to the 2010/11 budget.

Greenwich Avenue

East Putnam Avenue (and area)

West Putnam Avenue (and area)

Railroad Avenue

Delevan Avenue

Glenville Street

On a pleasant note, there have been some new business openings (or at least name changes)

Plus women's retailer, Madewell, sister company of J. Crew, opened a store on Greenwich Avenue yesterday. I hope their business flourishes, but I'm not sure if $115 jeans and t-shirts will continue to be a wardrobe staple in the near future (but then I wear Levi 501 jeans; so take what I say on current fashion demand and style with a grain of salt).

And we have another planned opening: