Bernie Madoff’s Beach Home Sells For More Than List Price
By Ilyce Glink | Sep 17, 2009 |
Guess the home sale pundits were wrong: Bernie Madoff’s beach house location is worth more – not less.
A spokeswoman for Corcoran, the listing agent, confirmed today that Bernie Madoff’s Montauk, NY beach house went under contract for more than its $8.75 million list price. She didn’t have information on when the property would close or how much more than the list price the buyer or buyers were paying.
The sale is bound to raise some eyebrows and heighten suggestions that the housing crisis has turned the corner. Over the past year, sales in the Hamptons, some of the most expensive and exclusive property east of Aspen, Colorado, have slumped. The few properties that have sold have taken a big beating on price.
But as Wall Street goes, so do home values in the Hamptons, not to mention Manhattan. While Madoff’s 3,000 square foot beach house was spectacularly located (the house was built closer to the water than current building codes allow), the truth is that Wall Street now has a quarter or two of immense profits under its belt.
Profits = bigger salaries and bonuses. And bigger salaries and bonuses often translates into real estate purchases. If the money men (and women) of Wall Street believe that New York (or Hamptons) real estate is undervalued, and they have bonus cash in their pockets, you can expect them to pounce.
Does the Madoff beach house sale signal a true end to the housing crisis? Maybe. Let’s wait and see what his and Ruth’s co-op sells for.