Hedge-fund manager John Paulson made more than $3 billion last year through smart bets, but his Hamptons house has sat on the market since spring and he recently shaved $2.6 million from the price, lowering it to $16.9 million.

In April, Mr. Paulson listed the seven-bedroom house for $19.5 million, over 50% more than what he had paid for it two years earlier. Located in Southampton on three acres, the house measures 6,800 square feet and has a glassed-in pool with a sauna room, according to the listing. Mr. Paulson bought it from Esprit Holdings director Jurgen Friedrich for $12.75 million in 2006, records show.

"We reduced the price to bring it more in line with the marketplace," says listing agent Michael Shaheen, of Prudential Douglas Elliman.

The townhouse Manhattan's Spence School purchased.

Earlier this year, Mr. Paulson paid $41.3 million for a much larger house nearby. Known as Old Trees, the estate comprises 10.4 acres on Lake Agawam with a restored, 15,000-square-foot mansion built in 1911, two guest houses, staff quarter and a pool. It had been listed for two years at $48 million, until it was purchased by real-estate investor Rodney Propp for $39.25 million, according to records, who then sold it to Mr. Paulson a few days later. A spokeswoman for Mr. Paulson said he had no comment.

Celtics' Allen Trims Seattle Home Price

Boston Celtics sharpshooter Ray Allen has lowered the price of his former Seattle-area home to $5.2 million from $6 million. Mr. Allen, 33, was traded to the Celtics last summer from the Seattle SuperSonics (along with Minnesota's Kevin Garnett). The two All-Stars helped lead the Celtics, which had the second-worst record in the NBA the previous season, to their first league championship since 1986.

Mr. Allen's 10,000-square-foot house was built in 2001 in Carnation, Wash. It has five bedrooms, eight bathrooms, floor-to-ceiling windows, a theater and a six-car garage. On 4.5 acres, the property includes a pool and putting green. He put it on the market about six months ago.

Mr. Allen has acted in several films, including Spike Lee's "He Got Game." He recently married his longtime girlfriend, Shannon Walker Williams, and also owns homes outside Boston and in Connecticut, according to his business manager, Orin Mayers.

Meanwhile, a few miles away in Fall City, Wash., former Seattle Mariners outfielder Jay Buhner has listed his custom-built home on 80 acres for $12 million. The ranch has a 7,500-square-foot, wood-and-stone main house, a pool, a pond and a guest house. It is adjacent to a private golf club. Mr. Buhner retired to the property in 2001 after 14 seasons with the Mariners.

Agents Trisha Quigley, of Executive Real Estate, and Marty White, of Windermere Real Estate, have Mr. Allen's listing; Maria Danieli, also of Windermere, represents Mr. Buhner's home.

Spence Buys House

Manhattan's Spence School, an all-girls, K-12 private school founded in 1892, recently closed on its purchase of a $27 million townhouse directly behind its main East Side building.

Located in Carnegie Hill, the 1919 townhouse is 28 feet wide and measures 12,200 square feet, according to the listing. The lavish house, which has 10 marble fireplaces, was the longtime home of a wealthy New York family linked to the Wanamaker department stores.

From January through June, 51 townhouses sold in Manhattan for over $5 million, five less than in the 2007 period, says a recent report by Stribling Private Brokerage. Stribling's Kirk Henckels had the listing.

Write to Christina S.N. Lewis at christina.lewis@wsj.com

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