Real Estate

Greenwich Teardown Trend Resumes in Earnest

Newer, bigger houses are replacing aging housing stock once again.

Written by Leslie Yager
From the 1990s to the first few years of the millenium, the real estate bubble did more than drive up Greenwich house prices.

A teardown trend took hold, resulting in older homes in central Greenwich being replaced by new, bigger construction. Many homes built at the turn of the previous century were razed, and because many were in the R6 zone with multi-family designation, they were replaced with condominiums.

The teardown trend came to a dramatic halt with the subprime crisis and ensuing recession. 

According to local realtor Linna Yee, of Coldwell Banker, the trend has resumed. "Homeowners in back country are downsizing. And downtown is desirable for its proximity to the train station and amenities like the Greenwich Library, YMCA, restaurants and Whole Foods," said Yee. "Yes, people specify that they want to live near Whole Foods."

On Milbank near the intersection of Lincoln Ave., a turn of the century house at 137 Milbank sold in 2010 for $1.175 and was razed. The new construction that replaced it sold for $3.385 in Sept. 2012.

Yee explained that sometimes builders opt to work with an existing structure rather than tear it down. She listed 19 Connecticut Ave., in central Greenwich, which had belonged to a woman who had occupied it for 84 years. According to Yee, a builder bought it for $716,000 last July, and though it was considered a teardown, he worked with what was existed. Within two weeks, the builder had an accepted offer for $1.625 in April, 2013.

Yee said that this past spring the market was hot and many buyers were builders looking for projects. Homes zoned multi-family in the R6 area, especially the ones on deeper lots like those that line Milbank Ave. are more likely to be replaced by condominiums. 

Sotheby's Suzanne Wind thinks the teardown trend impacts all parts of town, but from her point of view is concentrated in Old Greenwich and Riverside.

"If you don't drive through a neighborhood where you haven't been for a few months, you notice houses are missing or replaced," she said. "There aren't as many listings on the market, so people are adding on or improving their homes. But once the prices firm up, sellers will be encouraged to list their houses."

Wind also said she's noticed more building on spec. "We have not seen that in a long time, where builders are confident the market is turning around. In 2008 spec houses sat on the market for a long time. But that's what buyers are looking for. They want as close to new as possible."

Coldwell Banker's Max Wiesen agreed that the downtown teardown trend has picked up where it left off, but in his opinion Riverside is the "epicenter" of the trend.

Wiesen said that modest homes on streets like Hearthstone, Bramble, Druid and Winthrop in Riverside are being razed and replaced with ever larger homes built as close to the property line as allowed. 

"Builders and users are competing for the properties, and driving up the prices," said Wiesen. "This has created a bubble like I've never seen since I've been in this business." 

What do you think of the teardown trend? Tell us in the comments section.



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