This report on Greenwich, CT’s real estate market has some clues for those in the art market. In the first place, the US government has been investigating multi-million dollar homes bought using LLCs because 25% of those buyers had triggered SARs (Anti-Money Laundering speak for suspicious activity reports.) If that weren’t enough to put off foreign buyers, the question is whether Donald Trump’s policies will further constrain foreign buying.
Foreign buyers pay 56% more than domestic buyers. Further up the real estate food chain, there’s even more to worry about. Above $10m there is nearly 13 years supply; from $5-10m, there’s 4 year supply:
What we’re witnessing in Greenwich right now is a microcosm of what’s going on more broadly. In other words, luxury housing is equally challenged nationwide.