Cutie's Gone, Not Sold

About 3 weeks ago, we heard a buzz developing about a new Tree Section listing – 1308 Elm.

It was coming on the market at $1.2m and was pretty cute, with decent square footage for an old cottage. (Hence "Cutie.")

Maybe it would be the perfect starter for a sidelined buyer waiting to get into MB.

Might it go quickly as a result? Or would a slowing market take its toll?

MBC tried a different kind of poll: Instead of asking readers to guess the right price, we asked you to guess how long the home would remain on the market. (See "How Fast Will Cutie Go?")

You may have noticed how the question we called contained the assumption that 1308 Elm would sell.

Well, if you voted in the poll while sharing that assumption, you can crumple up your bet tickets and toss them on the ground.

You see, Cutie went fast, but not like we thought she might. Pulled up lame on the first turn, in fact.

1308 Elm has been rented, so the listing canceled with 18 DOM.

The winners in our poll were the tiny minority of 12% who said Cutie "Won't Sell." (See complete results in "Sorry, Cutie.") They were right in a big way.

It's worth noting again that this home was purchased most recently in Sept. 2003 for $840k. (See the first story for the full recent sale history.) Were it to have sold for anywhere from $1m-$1.2m this time, the owners might have taken a nice profit away with them. Instead, they'll hold it a while longer.

Weekend Opens (8/30-8/31)

They ended Summer before anyone was ready.

Mainly that means this Labor Day weekend is a stay-cation kind of long weekend for a lot of MB locals – travel is behind us.

Some of the newer listings looking forward to a big Fall Selling Season are eager for your attention if you are around – especially 3 new offerings in the Sand.

Click here for the complete list of opens published in the Beach Reporter, or at any time use the link in the right-hand column under "Prop. Search Tools."

As always, click any highlighted address below for more pics & details via Redfin.


Hill Section

Saturday is only the second time we've seen 312 S. Dianthus (pictured) posted as open.

It's a 5br/5ba, 4475 sq. ft. home with ocean views. We most recently described this one in detail due to its wildly fluctuating prices (see "How Quickly Things Change.") Current price of $2.850m is down $899k from its highest point. Open ONLY Sat. 2-4pm.

511 N. Dianthus is a 3br/2ba, 1900 sq. ft. "starter" that recently was made more interesting by staging it with a 60s contemporary flair. Now at $1.269m, and also open ONLY Sat. 1-4pm.


Sand Section

After a bit of a drought in the Sand, we have 3 new listings open this weekend:

510 23rd (pictured) is a new Spanish near Grandview school, offering 4br/4ba and 3200 sq. ft., including a 2-room basement. On a street-to-alley lot on a quiet block. Starts at $2.399m. Open Sun. 1-4pm.

217 32nd Pl boasts ocean views from the top floor, but you'll have to get past the alley/alley location.

It's new construction offering 4br/4ba and 3050 sq. ft. maxed out on an 1800-sq.-ft. corner lot. Starts at $2.799m. Open Sat. & Sun. 2-4pm.

444 36th is an updated 1950s-era cottage, with 3br/3ba and 1800 sq. ft. The lot is street-to-alley.

There's a claim of ocean views here from the master, though we see a lot of rooftops in the way. Starts at $1.549m. Open Sat. & Sun. 1-4pm.


Tree Section

616 29th was first offered in late April. It's a 3-year-old Craftsman with 4br/5ba and 3500 sq. ft. As we've said before, we don't find the exterior styling authentic. But many of the interior spaces are sweet and spacious. The home has recently been staged to gussy it up.

Here's a startling example of flatness in the market. Seller paid $2.425m almost exactly 3 years ago, on Aug. 22, 2005. They're asking $2.425m now, after a relocation. (See "Job Transfer Blues," featuring this home and 2 others.)

Hey, wait, that's a loss after costs of sale, isn't it? And there's the related problem of how inventory, including new stuff, is clustering closer to $2.3m. Uh-oh. Open Sun. 1-4pm.

Not Holding Out

Builders with new homes on offer in this market know that it will take some combination of patience and price-chopping to make a deal. How to balance the two?

When they started their projects 18-24 months ago, they had to plan for the ultimate market value upon completion. But the market, particularly in the Tree Section, has slowed to a crawl, and a yearlong glut is only gradually being reduced. Asking prices, overall, have been adjusting downward.

In this environment, what was supposed to be an elite-level, high-priced home at 560 36th is now heading to the bargain bin. (Click highlighted address for details via Redfin.) The seller here is more focused on the price-chopping approach than on eternal patience.

The original ambitions for this new home were top-tier: It began just $1k shy of $3 million in late March.

It's big – 4br/4ba and 3800 sq. ft., a good 500+ sq. ft. larger than the typical Tree Section newbie. And though it's sharply modern in style, we've always liked the warmth of some of the materials and the overall flow of the house.

Same floorplan with a Cape Cod or Caliterranean look, they might even have a deal by now.

Though the builder thought $3m to start was reasonable, just 2 months later, the price was already down $500k/-17% and the listing was screaming "please submit all reasonable offers!" (Listing price history taken from Redfin.)

Two months? That's nothing for new construction in the Trees these days.

Three more months passed after that, and now, another $300k has come off the price. It's at $2.199m now (-$800k/-27%) after a new cut Wednesday.

At $579/PSF, that's the lowest PPSF for a new home in the Trees that we've seen for a long time. The only PPSF on a new home that came close in the past 6 months was $591/PSF for 2309 Pacific.

That was a true cookie-cutter newbie on a busy street that sold for $1.890m in April. (See 2611 Palm for its twin.) 36th is easily superior.

560 36th is being punished partly because of the location. As the image here shows, the home is distractingly close to the National Guard Armory. And Sand Dune Park – a real local treasure, but one that can get very busy – is also nearby.

And there's the "modern" problem. These high-style homes, by definition, turn off the average person. There goes another segment of potential buyers. More specifically, 560 36th doesn't seem friendly to small children, particularly due to the concrete floors and open staircase between the kitchen and a sunken living area. Whoops, the buyer pool just got smaller, again.

OK, alright, yes, yes, we get it – that seems to be the attitude of the sellers now. They're not holding out.

They are going to find that place at which the clear positives outweigh the negatives and overcome the sluggish market. And once they do, everyone else holding a Tree Section property will have to explain why their prices are magnitudes higher.

A Hilly Hat Trick

Most of a month passed with no sales in the Hill Section. But things changed quickly.

The last sale (new escrow) for a while was 508 Larsson, a small, dated home on a large lot on the Sepulveda side. That sold on or about July 24, and then a modest drought began.

Last week, 913 8th went into escrow at $2.249m.

Tuesday, deals were posted on 3 more Hillies:

• 910 2nd at $2.895m;

• 914 2nd (pictured above) at $2.999m (it was Mrs. MBC's pick in mid-July); and
  

• 808 Highview at $4.850m.

(Click highlighted addresses for details via Redfin; at the time this story posted, all 3 listings could still be seen while in "backup offer" status.)

So it looks like Hill Section buyers are back from vacation.

Last time we saw a fairly close cluster of 3 sales in the Hills was in early April. (See "Hills En Fuego.")

At that time, inventory in this subregion was at 15. On August 15, inventory was at 24. (Dare we point out that this was a 60% increase? Well, small numbers can be misleading.)

The new sales also helped wipe out a local mini-trend. For a time there, 5 listings were clustered on busy 2nd St. Three were all next-door neighbors.

With 2 of the sales above and a cancellation Monday at 114 N. Poinsettia, suddenly there are only 2 left on 2nd, with 1 near the bottom of the hill (815 2nd) and 1 at the top, the last house on the street, next to a commercial building (1042 2nd).

This little hat trick is a breath of fresh air in an otherwise downbeat time. Here's a secret: The buyers all got into some pretty great homes.

How Was Your Summer?

When you're young, you count the end of Summer as the start of school. That'd be tomorrow.

When you're grown up and working for a living, Labor Day is the end of Summer. That's around the corner.

Either way, let's not fret. Instead, let's celebrate what a great Summer this was. Roughly 5 days hot enough to make you wish you had air conditioning. Warmer than usual ocean temps. Some great events at the beach.

Take a moment to vote in the (long) poll at the left. Check off everything you did this Summer at the beach. We're running the poll through the grown-up end of Summer – Monday night at 8pm.

We'll compile the results and let you know how MBC readers spent the season.

Oh, of course, it's not too late – if you see something on the list you haven't gotten to yet, now you have an agenda for the long weekend.

Poll Results: 700 35th

It's a strange time of year for MBC pricing polls.

Most listings on which we have gotten reader input through our polls remain for sale months and months later. Spring and Summer came and went with most untouched. So we haven't got much info to use to judge the predictive powers of the group that's voting.

And then there's the phenomenon of dropouts. As we noted 2 weeks ago in "Recent Dropouts," it seems the most common activity in the local RE market at this moment is listings canceling.

Monday, that happened with 2 of the 3 listings we featured in our (apparently uninspiring) recent poll, "Who'll Be First to $6m?" (See the results story.) Both 114 N. Poinsettia and 923 1st are currently out of action, though 1st St. has a history of bogus re-lists. It wouldn't surprise us to see both back after Labor Day.

Now, we're thinking maybe this time it's different. 700 35th, a lovely Tree Section listing that's been around just 2 months (listing says 1 month due to a bogus re-list), seems like one that could move from toe-dipper to serious seller this Fall.

The home has such inherent charms, you can imagine someone willfully "overpaying" by a bit if the sellers will adjust somewhat to meet the market. (See the original story for much more on the home.)

So, at what price should 700 35th sell?

Voters in the MBC poll were pretty bearish. A plurality (34%) said the home will go for $2.2m or less. If we combine the two price ranges above that, we see that 42% believed the sale price would be between $2.2m-$2.5m, with the bulk of those (25%) suggesting the lower end of that spectrum – $2.2m-$2.4m.

Keep in mind that 700 35th was a purchased at the peak of this submarket in July 2006 for $2,482,500. Very few people voting in this poll thought the sellers would break even in 2008. The current listing price, $2.649m, was viewed as correct (within 5%) by just 9% of voters. Substantially more (15%) thought the home simply would not sell.

The market in the Trees has changed a lot since the current owners bought 700 35th, with great new homes hovering near $2.3m, and plenty of buyer options. Objectively, the price pressure is downward. Subjectively, our voters think it's way downward.

Homer's Shocking Fall

Here's an update to last month's story on the travails of 225 Homer. We have described the property as a:

decent-sized 3br/3ba, 2300 sq. ft. home with substantial ocean views. Contemporary, clean, and nice, nestled in a very quiet part of the South End...

When MBC took note of this one finally making a deal in mid-July, after 100+ DOM, we only thought we were astonished by its drop from a start price of $2.3m. (See "Poor Homer.")

Now that the closed sale price has posted, we're even more amazed. It went for $1.700m, a shocking cut of $600k/-26% from the initial offering price.

The shock is magnified because a significantly smaller, older and crustier home just a few doors down recently went for more money, making a deal quickly in March – just 7 DOM. The neighbor was 207 Homer (3br/3ba, 1800 sq. ft.), which closed at $1.715m and $953/PSF.

207 Homer needed almost everything and its principal asset – ocean view from a window and a balcony – would be at risk if the next home to the west ever builds up. (This is MB; it's only a matter of time.) By contrast, 225 Homer has an alley to the west and is taller, preserving those views.

Look at the closed price on 225 Homer and the PPSF difference is also startling – $739/PSF for the newer, larger home versus $953/PSF at 207 Homer. That's 22% lower that the older neighbor. (Lot sizes are equivalent.)

Finally, let's compare the newest sale with the seller's acquisition price. In August 2002, according to PropertyShark.com, 225 Homer was purchased for $1.342m. Fully 6 years later, it was up just $358k.

Sure, that's a 26% bump, nothing insubstantial, but how many properties in quiet locations, near the beach, with big views, rose in value by such a modest amount during our local boom years?

Two problems hit 225 Homer simultaneously. The local market remained slow into the Spring and Summer and may well have shifted down from March to July, the months in which each property made their deals. Meanwhile, the seller, while not desperate, per se, had abandoned the house and watched it cross 100 DOM, and finally had to get into a deal-making mode – whatever it takes to unload the place.

The change of circumstances over those 100+ days was significant. An early offer at $1.725m was rejected out of hand. At the time, it must have looked like a non-serious lowball. And it was almost crazy – then – to think that 225 Homer should sell for only a trifle more than 207 Homer.

In the end, it sold for less than the neighbor, adding weight to that adage: the first offer is often the best offer.

Open Forum (8/25-9/2)

Seems like everyone wants to come down to the MB pier.

This weekend, they literally came by the busload – as part of an area nonprofit's "Day at the Beach" for kids who don't often see one.

Buses? That's easy.

How about making your way to the pier over the course of 5-7 hours, on your own power, across 32 miles of ocean?

That's what 95 elite paddleboarders set off to do from Catalina Island on Sunday morning at 6 a.m. (Pic taken from paddleboards.com.) The "Catalina Classic" has a storied history (back to the 1920s and 30s) and is classified as a "marathon" among paddleboard races. Great stuff, but, guys, there are boats running all day, every day!

Finally, don't shoot the messenger, but Summer's over. School starts Tuesday & Wednesday.

As always, please use the "Open Forum" thread for news clips, off-topic questions & discussions of any nature. Note that this one runs through next Tuesday, after Labor Day. And keep it clean.

Weekend Opens (8/23-8/24)

No one is rushing to push new listings out the door these days, with Labor Day around the corner. Inventory is scaling down a bit, with more and more quitters and few new listings.

But there's plenty to see this weekend. We're revisiting a few listings that we have suggested in the past and which remain available.

If you visit one of our recommended listings, be sure to tell the agent that MBC sent you.

Click here for the complete list of opens published in the Beach Reporter, or at any time use the link in the right-hand column under "Prop. Search Tools."

As always, click any highlighted address below for more pics & details via Redfin.


Hill Section

218 N. Dianthus began near $7m (at $6.75m) in March, and has now dwindled below $6m (to $5.995m). There's a lot to love in this vast, 4br/5ba, 5600 sq. ft. home. We called the living spaces "robust and opulent" in our first take in March, but also noted some layout oddities.

The listing language is a tad grandiose:

• "One of the most beautiful homes ever built in Manhattan Beach"

• "The kitchen is a workspace showcase with ... an island the size of Capri."

• "[T]ruly a symphony for the senses."

Surely you'll want to see the reality that inspired those words, even if they are those of a salesman. Open Sun. 1-4pm.

717 10th is a sharp, appealing modern home with big ocean views. Offers 5br/4ba and 4250 sq. ft. on a 5800 sq. ft. lot. Still at $3.850m, a tad more than $1m above the Oct. 2004 purchase price. Open Sun. 1-4pm.


Sand Section

220 19th is gorgeous, and the sellers know it. That's why they believe the 2001 home will command $5.2m or so – a nice return on their $2.1m purchase price from that year. (That's +$3.1m/+148% over almost 7 years – covering pretty much the whole boom/bubble period.)

For that $5m+, you get a walkstreet home near downtown with 5br/4ba, 4325 sq. ft. on 3 levels with an elevator. Open Sun. 2-5pm.

3020 Alma is a small (3br/2ba, 1300 sq. ft.) remodeled 1930 Spanish on a corner lot at 31st that offers some sweet, secluded outdoor spaces and ocean views. Now in its ninth week, down $150k from start at $1.395m. Open Sun. 1-4pm.

317 5th is a large contemporary (circa 1993) on the alley corner at Crest, priced now at $3.1m. When it first hit in the Spring, MBC said it was "priced competitively at $3.2m," and that seemed to be the conventional wisdom way-back-when, in early April. Now, 5th is one of several listings amid the "Quiet Walkstreets" – the flat walkstreets south of downtown that just aren't moving like a lot of folks expected. It could be that people just are not into the older contemporaries. Open Sun. 1-4pm.

You know it's a greatest-hits edition when we mention 4419 Highland, the Gateway to Manhattan Beach – passed by many, purchased by none. Now offered for more than 450 days, on its third agent, and sporting new banners touting a lease-option purchase opportunity (caveat emptor) and extra parking spaces. Currently at $1.265m. Open Sun. 2-4pm.


Tree Section

3314 Laurel is a slick showpiece (4br/3ba, 3450 sq. ft.). Pay no attention to that 1985 construction date. Inside, you've got a new home, almost, with an extremely careful, competent, beachy remodel. It's no surprise they had a quick taker when this one first hit the market in early July – it's appealing – though that deal didn't work out. Two months later, it's still at $1.879m. Open Sun. 1-4pm.

608 33rd is priced the same as 3314 Laurel, but we don't get it quite the same.

Outside, it's kinda Spanish. Inside, contemporary, but dated. (We trust you know what we mean.) There's a ton of space (4br/3ba, 3700 sq. ft.) but also a lot of work to be done if you want to make it yours. Priced at $1.879m. Open Sat. & Sun. 1-4pm.

700 35th is newer (built in 2003) and scores points for size (5br/4ba, 3675 sq. ft.), yard and location – on a corner lot at Flournoy, facing west. It's the subject of MBC's newest pricing poll, so we encourage voters or potential voters to tour the home, evaluate it and vote here before late Sunday night. Vital details – purchased for $2.482m in July 2006, now at $2.649m. Open Sun. 1-4pm.

It Remains Unpredictable

Fully 7 months ago, when first we reviewed 923 1st in the Hill Section, the title on MBC's story was "Unpredictable."

The point then was that the home itself was full of surprises. It's completely unlike any layout we've seen around town, though perhaps in line with homes on bluffs in Malibu or in the Hollywood hills.

It turns out, the price on this one has been a moving target as well, with cuts and bumps and cuts and bumps along the way:

• Jan. 9: $7.998m
• March 26: $7.595m (-$403k)
• April 28: $7.375m (-$220k)
• May 6: $7.595m (+$220k)
• May 29: $7.350m (-$245k)
• July 31: $7.150m (-$200k)
• Aug. 15: $7.350m (+$200k)

That's right, twice now the listing has reversed price discounts of $200k or so.

Once, the cut lasted less than 10 days, while the more recent chop lasted 2 weeks. No magic? Reverse the cut!

MBC readers recently ranked 923 1st as the least likely out of 3 specific listings to drop down to $6m any time soon. (See "Results: First to $6m.") That was a bit prescient – it's the only 1 of those 3 to increase its price since then.

MB Market Update for 8/15/08

The new MB Market Update spreadsheets are available by clicking here, or at any time by using the link in the upper-right corner of the front page, under MB Market Info & Updates.

The current update covers activity in the first half of August.

We had 112 active SFRs in our subject region west of Sepulveda as of Aug. 15, down 4 from the end of July. This ends a recent Summertime run of record highs in inventory reported by MBC (records, that is, in the year-plus that we've published our public market tracking). A significant reason – sellers are pulling out rather than adjust their prices (see "Recent Dropouts").

We saw the same number of cancellations (7) as we saw sales (new escrows) in this period. The full tally – 14 listings came out of inventory, 9 new listings hit the market, and one pending listing returned to the active market.

There were 24 active SFRs in the Hill Section, 38 in the Sand, and 50 in the Trees. Nowadays, Tree Section inventory below $2m is pretty high for what we've seen the past year or so, at 32.

Among the new listings, some highlights include:

• 423 19th (4br/4ba, 3900 sq. ft.), starting at $2.790m;

• 332 10th (4br/5ba, 4100 sq. ft.), a beauty on a walkstreet near downtown, at $3.999m;

• 232 16th (5br/5ba, 5000 sq. ft.), formerly known as 234 16th St. (see "Enduring Mystery"), offered last year at $4.5m, now up at $4.295m;

• 841 12th Ct., which hit the market just 2 days after closing for $950k, new price: $1.1m (see "A New Lot Flip");

• 1308 Elm, once called "Cutie," a little cottage starting at $1.2m (see "How Fast Will Cutie Go?" and "Sorry, Cutie"; and

• 2829 Valley (5br/4ba, 3425 sq. ft.), another new home (not quite finished) starting below $2m ($1.989m).

We'll discuss which homes sold this round, and closed sale prices, in an upcoming story.

Pricing Poll: 700 35th

The Tree Section market above $2m has been evolving significantly in the year-plus since MBC began.

We've seen the stagnation of the new-construction market – with exceptions! – and gradually lower sales prices among continuing listings.

Into this market, about 6 weeks ago, came 700 35th. (Pcitured – click address for pics & details via Redfin.)

It's the subject of our newest pricing poll. Please read the story below and vote in the poll, and support your position in the comments on this story. Voting closes Sunday night at 8pm.

If you're shopping west of Sepulveda, the draw of the Trees is the fairly large homes (newer homes range from 3100-3600 sq. ft., occasionally more), a yard and maybe a quiet location. You don't get that stuff closer to the beach, and the Hill Section can be just a different world.

700 35th is newer (built in 2003) and definitely scores points for size (5br/4ba, 3675 sq. ft.) and yard. This is not some grassy patio, but a heaping serving of yard where you can actually imagine parties spilling out, or tossing a ball to a kid older than 3. (The lot is 5400 sq. ft.)

The interior spaces ooze near-perfection. The great room (kitchen/living space) is vast, connecting to the substantial patio and yard. The kitchen itself sticks the landing – terrific soapstone counters, great appliances, a good layout. The master is spacious and you can't take much away from the master bath.

The home is on a corner lot at Flournoy, facing west. Great location – though it is objectively near the Chevron refinery and Rosecrans, this is a quiet corner of the Trees.

One of our favorite aspects of 700 35th is the very sense of trees from each room. Whether by design or happy coincidence, in each room you have the sense of being surrounded by woods, not just neighbors. If we may overstate it, the feeling is more of a woodsy cabin than just one of many homes along a row of similar homes on an a semi-urban street.

Many folks who have seen the house love it, and it was one of Mrs. MBC's picks (sorta). So now we come to the matter of price.

700 35th was purchased pretty much at the peak of this submarket in July 2006. The owners paid $2,482,500. Deciding to sell now, they priced the home about $200k higher, at $2.689m (+206k/+8%). It's now down a tad to $2.649m.

The problem with the price is that the market is, as we mentioned above, evolving.

Some high-end new construction has, in fact, sold recently for $2.6m or more:

• 2701 Palm (5/4, 3300) – $2.749m

• 2705 Palm (5/5, 3300) – $2.689m

• 668 33rd (5/5, 3250) – $2.737m

• 742 33rd (4/6, 4025) – $2.7m

• 664 33rd (5/5, 3550) – $2.605m

However, there is really no example of a similarly aged and sized property selling in the Trees recently. The biggest rationale for the current price on 700 35th is the previous purchase price ($2.482m), plus an assumption of appreciation since then.

But the reality is that buyers at this price point – and points below – have lots of options, including new construction, nearer to $2.3m (click any highlighted address for pics & details via Redfin):

• 751 26th (5/5, 3500) – $2.3m

• 560 35th (6/5, 4100) – $2.325m

• 640 30th (5/6, 3450) – $2.349m

• 560 36th (4/4, 4050) – $2.349m

• 721 36th (5/5, 3450) – $2.395m

Though we'll continue to rave about 700 35th, the fact that it was a peak purchase and the fact that buyers have many options suggest that the $2.6m range is an impossible bar for the listing to jump. Agree? Disagree? Please vote in the poll and share your comments here.

Sorry, Cutie

Maybe we should forget the buzz that greeted 1308 Elm just 5 days ago. (Click address for pics & details via Redfin.)

MBC readers, as a group, didn't think it was so hot.

A new Tree Section property hitting the market at the $1.2m price point apparently has a welcoming audience. (See our original story, "How Fast Will Cutie Go?")

Plenty of folks would like to buy in at around that price. There was real excitement to begin.

Elm's bonuses (a "flag lot" garage entry, bonus square footage above that garage, old-time charm) seemed to give it extra potential.

And then came the reviews. Awkward layout – no master. Baths that need complete overhauls. Some improvements that, er, need improving. Suddenly, $1.2m didn't look so great.

MBC posed the poll question in a different way this time: How quickly would the "cutie" at 1308 Elm actually sell?

Very few (6%) opted for a quick sale; not many more (15%) thought it'd be gone within a month.

In this guess-fest, the real divide was over the question of whether 1308 Elm will sell within 60 days, or after more time. (Of course, after 60 days, we imagine greater price adjustments are part of the deal.)

A combined 45% voted that the property would sell within 60 days, while 43% thought it'd be more than 60 days.

Even greater pessimists were those who said 1308 Elm wouldn't sell at all. They numbered 12% in the poll. They were bolstered, in part, by news that the home was a rental, has been available for rent, and continues to be available for rent (at $4,500/mo.).

The greatest single vote-getting category in this poll was 100+ days – with 28% of the vote. To believe that the property will sell, but will take a long time to sell, one views the market as tough for buyers, the property as overpriced to start, and judges the competition to be a real factor.

We mentioned 3 competing properties in the original story, but one more joined the market this week – 2401 John (pictured).

John hit the market in early May and lasted roughly 10 minutes. It has been lingering in a "pending" status since then. Monday, it hit the market anew, evidently after a failed escrow.

The listing is comparable to 1308 Elm – living space that's a bit smaller, a lot that's a bit bigger, and a location that is better. But John re-enters the market $10k below Elm at $1.189m. (Same price as it began in early May.)

That's a challenge to Elm, but the little cottage may yet surprise people. Stay tuned.

Standing Up for Peak Buyers

Rising to the defense of recent L.A. home buyers is recent L.A. home buyer – and writer – Chris Ayres (that's not his photo to the right).

In Sunday's LA Times, Ayres says that his only regret in buying a home in Hollywood last year is "wishing I'd borrowed more money and bought a bigger house." (See "Loving Your House Again" from the Sunday LAT.)

No hand-wringing over buying at the peak. No worries about future sale prices. Ayres is thinking he got a great mortgage before the credit meltdown, and he figures that, over time, he and other peak buyers will be fine:

Those of us who purchased nonspeculative property from 2004 to 2007 for the gratuitously self-indulgent purposes of raising a family and investing in our neighborhoods will ultimately have the last laugh.

Much of Ayres' argument falls into the "buy and hold long-term" category. Broadly speaking, over time, your value goes up. Meantime, you can deduct mortgage interest from your taxable income and deduct property taxes. Better to own and get those write-offs than not, he's saying.

Ayres also advances some arguments regarding the "real" value of money as price inflation takes hold. The real-dollar value of a current million-dollar mortgage will be only $600k in 10 years, he says. So it will appear to be relatively less of a burden then. (Ayres assumes 5% inflation for the next decade, which is very high by historical standards.)

But Ayres goes off the rails in trying to support a notion that today's peak buyer is better off – by big bucks – after 10 years. After running his numbers, Ayres says:

Net result? The penalty for having bought at the height of the worst real estate bubble in history adds up to a potential $1.1 million gain.

So where's the $1.1m? Can you tap it, spend it? Sad to say, Ayres is a journalist, but that $1.1m is fiction.

The first $400k is from writeoffs. We could quibble with those cocktail-napkin figures, but we won't. It's the last $700k that's a problem.

In Ayres' example, a home was purchased for $1.2m in a recent peak year and is now worth $800k (an extra-large chop of 33%). Over the next decade, its value returns to $1.3m. However, the loan is "worth" only $600k in real dollars. The gap? $700k in hypothetical equity!

If you're following at home, we hope you noted the bait-and-switch. The actual loan balance in 2018 is probably still close to $1m – but Ayres is asking you to think of it as just $600k. The problem is revealed if the hypothetical owner successfully sells at $1.3m. The gain is $100k (minus costs of sale) and the seller gets his $200k down payment back, plus any principal paid. Sorry, the snake oil doesn't work – there's no $700k bonus.

The fact is, if prices dip sharply and return to peak over the course of a decade (as they did, roughly, in MB in the mid-1990s), no one gets a big payday out of it. Tax writeoffs? Great. Being king/queen of your castle? Very valuable. Big equity gains? Nope.

For the "last laugh," Ayres will need to think a little more long-term.

Open Forum (8/18-8/24)

With our newest open thread here, we're hoping for the occasional rave on the joys of MB.

Your blog author recently spent some time with a director of a local nonprofit that provides afterschool and Summer programs for youth from some of the tougher parts of our local area.

On a day trip to the beach, the director was astonished to find that 4 out of 5 teens he was working with had never seen the ocean. Most lived within 6 miles of the beach.

Many of us here raise our kids at the beach. If anything, we might worry that we don't go often enough, or maybe that the kids aren't interested in surfing at a young enough age. And of course, we take our coastal climate for granted.

But, yes, we are very lucky.

As always, please use the "Open Forum" thread for news clips, off-topic questions & discussions of any nature. And keep it clean.

Weekend Opens (8/16-8/17)

To judge by the cold and even the thunderstorms, you'd think Summer is giving way to Fall a bit early this year. (Has anyone got Al Gore's number?)

But August is still August – few new listings right now as people hold back till Labor Day. Indeed, the Sand Section quite simply has nothing new to offer this week that's open, so MBC is taking the unprecedented step of skipping suggestions for weekend opens in that submarket. You're free to propose your own must-sees, of course.

Click here for the complete list of opens published in the Beach Reporter, or at any time use the link in the right-hand column under "Prop. Search Tools."

As always, click any highlighted address below for more pics & details via Redfin.


Hill Section

511 N. Dianthus has just undergone a little mini-transformation and celebrates a second coming-out his week. The new price, $1.269m, is down -$160k/-11% from its start in late April.

And the 3br/2ba, 1900 sq. ft. "starter" was made more interesting by staging it with a 60s contemporary flair. The listing now implores:

Come and see how a good designer can make ordinary into extraordinary.

The listing agent, Kaye Thomas, has blogged about the staging process twice recently (see here, and here for the newest piece) and even posted before-and-after video.

Hey, it's no "Extreme Makeover," but that's a good thing. When was the last time your agent blogged about your listing? Open Sat. 1-4pm & Sun. 2-4pm.

914 2nd has drawn our notice a couple times already here. It's 1 of 5 active listings along 2nd St. in the Hills. This week the prop took its first cut, -$251k, and is now at $2.999m. Pretty luxurious. Open Sun. 1-4pm.


Tree Section

1308 Elm is the subject of a current poll at MBC (see "How Fast Will Cutie Go?"). Therefore we encourage your attendance this weekend and continued votes & comments.

There's no doubt that anything at this price point ($1.2m) is intriguing to a large number of people; hence the buzz when the listing was first announced.

How fast it will go depends on how nice people find it to be in person. We've heard pros and cons here in recent days. Check it out Sat. & Sun. 2-5pm.

2907 Pacific will get some second looks this weekend on account of the emergence of 1308 Elm at the same price. Pacific is larger (+500 sq. ft.) and more updated, but it's on Pacific north of Valley. Open Sun. 2-5pm.

We haven't heard much from 1829 Poinsettia recently. It's a very spiffed-up cottage that entered the market last year at an incredible $1.785m. (See "Aiming High on Poinsettia" and "Aiming High, Part II.")

Now, 450+ DOM later, it's got a "motivated seller" (per the BR listing) and a reduced price at $1.389m. That's still just a bit below $1,000/PSF, which isn't common for cottages – 3br/2ba, 1450 sq. ft., in this case – however delicious they might be. Open Sun. 1-4pm.

MBC readers already knew that 2611 Palm must sell – foreclosure proceedings have begun. (See "Palm Blues.") Now that's part of the BR advertising: "Bank Says Owner Must Sell," says the headline. Now at $1.999m. Open Sun. 2-4pm.

Quiet Walkstreets

If you know the charms of the South End, particularly the flat walkstreets, the utter lack of sales activity down there recently is baffling.

In mid-April, MBC noted that inventory was building on the flat walkstreets. (See "Options Grow on South End Walkstreets.") In the four months since then:

• 1 sale

• 3 quitters

• 2 new listings & 1 returnee

The only sale was 408 6th, and that one took a fall – from $2.625m to $2.050m (-$575k/-22%), pretty close to lot value, though it was set to hit the rental market, last we heard.

New & Returning

500 7th (pictured) is on a corner lot on a street that MBC recently labeled one of MB's "Great Streets." There are 3br downstairs and one debatable "bedroom" (now a living area) off the kitchen and dining room; total 3100 sq. ft.

Pluses: Very high ceilings, bright rooms, roofdeck. Negs: 80s/90s feel, small kitchen, minimal outdoor space, too-open floorplan that needs more definition. Started at $3.195m; recently cut almost $200k to $2.999m. DOM: 72.

332 10th is near the max in square footage (4100+) and boasts great lineage and design, plus ocean views. It's a beauty, and also the highest-priced public offering in this submarket at $3.999m. DOM: 50.

532 6th is a surprisingly warm contemporary with 4br/4ba and 2700 sq. ft. It touches both the 6th St. walkstreet and Valley. It tried briefly in Nov. 2007 at $2.7m, then returned this year in June at $2.350m. It has cut again to $1.999m, just a bit over the March 2005 purchase price of $1.818m – a far cry from the 50% markup last year. DOM: 49.

Quitters

528 6th is the neighbor of 532 6th, built by the same builder, but in a much harsher, more angular, contemporary design. The sellers tried for 5 months at $3.449m for this 4br/4ba, 3305 sq. ft. home, but never cut and decided to keep it late this Spring. (MBC revealed a controversy over the square footage in "Buyer, You'd Better Verify.")

316 10th is another harsh contemporary home, all steel and glass, this one on a corner lot bordering Crest. It offers 4br/5ba and 4350 sq. ft. Sellers tried for 8 months at $3.999m, no cuts, canceling late this Spring.

341 10th is, thankfully, not contemporary – it's got a great traditional feel and warm woodwork, cozy spaces, nice touches. Almost a quarter of its listed square footage (3150) is tied up in a much less improved rental unit attached in back. Began at $3.3m in March, trimmed $500k to $2.799m, but quit this week.

In sum, as Summer wraps up, we're pretty much where we were in the Spring on the South End flat walkstreets.

The other active listing in this submarket is 317 5th (pictured), a more moderate contemporary (circa 1993) on the alley corner at Crest, priced now at $3.1m. When it first hit in the Spring, MBC said it was "priced competitively at $3.2m," and, well, that seemed to be the conventional wisdom at the time.

At the time, we believed in the myth of long waiting lists to get into the South End.

We believed the area was one submarket that was going to hold its own because of its inherent desirability.

The market, however, is not reacting as we expected. Demand isn't there at these prices, and sellers are walking on their walkstreets rather than concede in a changing market.

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UPDATE: Late Friday, about 16 hours after this story went up, 500 7th was posted as in escrow.

How Fast Will Cutie Go?

There's a palpable buzz around 1308 Elm as we speak, so we're going to try a different kind of poll.

The question this time is not about price, but about timing. Namely, how quickly do you think this cute bungalow with some extras might go?

How you answer might indicate how much pent-up demand you think there is, how great this little house is, how well-priced it is, or how challenging you think the market is regardless of those factors.

Please read the story below, vote in the poll, and support your position in the comments here.

The home will be open this weekend (Sat. & Sun., 2-5pm), allowing a chance for readers to review the home in person, so we'll extend the poll from the normal 3 days to 4, closing Sunday night at 8pm.

Now, let's establish what it is that we're voting on here.

In the postwar period in L.A. (we're talking about WWII, by the way), vast swaths of territory were taken by new little bungalows. Way back then, people only needed about 1000-1500 sq. ft. to live. Entire families – often larger than today's families – happily shared the space.

Sure, it sounds crazy now, in an era where at least 1500-2000 sq. ft. more is considered de minimus for a family home in MB. But the people were actually grateful.

1308 Elm (click for pics & details via Redfin) was built in that bygone era. It offers 3br/1ba, officially, and another bath that may or may not be permitted (listing). Square footage almost reaches 1400, though there's some other unofficial space above the garage. (It's an outlaw house!)

If you know MB homes of similar vintage, you'll find the layout familiar. The kitchen is, helpfully, upgraded, though not to high-end standards.

A bonus with the lot – it's a "flag" lot, with garage entry off a little sliver of land that connects to 14th St. That means no garage face. Sweet.

Today's price is $1.199m. That price point has a lot of sidelined buyers these days. No question, Elm will draw interest. Competitors include:

• 2907 Pacific – same price, greater square footage (+500 sq. ft.), more updated, but lingering now;

• 2905 Valley – $1.239m, +100 sq. ft., far inferior location; and

• 2105 Walnut – $1.175m, +225 sq. ft., much more of a challenge.

To be fair, the Elm location is not exactly a dream. That cross-street, 14th, is fairly busy, a cut-through off Sepulveda. Elm is only one street removed from Sepulveda itself. True, it's just steps to Target, but that is a phrase we've never seen in a listing before. In reality, you're a pretty big hike from most places you might want to go, other than Pacific School.

The price history on this home is interesting, because it switched hands several times over the last 20 years (see graphic via Redfin). Most recently, it was purchased for $840k in Sept. 2003, which puts the current listing at +$359k/+43% over that time, a bit less than 5 years.

We're guessing (assuming!) that the start price is within 10% of the market value, so we won't ask about price, exactly.

Let's stipulate to the fact that there are buyers who want, at least, the ZIP code and the schools, and can handle the small size and other compromises.

Will they make their move within 10 days, 30 days, 60 days, 100 days, or more?

Again, please vote in the poll and support your position here in the comments.

How Quickly Things Change

We continue MBC's weeklong focus on the Hill Section's growing inventory by focusing anew on 312 S. Dianthus (click address for pics & details via Redfin).

In late April, this large, ocean-view home hit the market for the first time at $3.490m.

MBC said then:

[It's] an early-90s Spanish-inspired home with 5br/5ba, 4475 sq. ft. and ocean views. It's got a roofdeck, which we do like, but a vintage 90s feel, which we don't love. Check out the pics – there are some real head-scratchers (strange mantles abound; the formal dining room appears to be outfitted with two desk chairs). Well, these are things you can fix or update after you move in.

But $3.5m wasn't quite enough. Shortly after Dianthus hit the market, nearby 869 3rd sold. It was newer and sleeker, but also smaller in terms of both home size and lot size. And 3rd was listed at $3.750m when it sold. (It later closed for $3.550m.)

So Dianthus adjusted its price upward. This tactic doesn't work often, but they gave it a try. Dianthus shot up to $3.749m in early May.

Can you believe it? Dianthus went into escrow after the price bump.

But it didn't stick.

When the listing returned June 12, it came back at the original price – $3.490m.

A week later, it was down noticeably – $3.270m.

Now it's down to $2.850m, and we're not sure how to describe its fall.

The MBC spreadsheet goes from the start price, so it's down $640k and -18%.

If we measure against the boosted price of $3.749m, it's down $899k and -24%.

The new price is aggressive and, importantly, separates 312 S. Dianthus from the rest of the Hill Section inventory at or above $3m, where there's little action.

Psychologically, it's hard to suck up a paper loss of $900k – even if the sale is going to be hugely profitable. But credit the sellers here for getting past their issues and trying to find the right price, and not in the slow-burn fashion most sellers tend to try.

Recent Dropouts

There was a time late last year when MBC took a look at a series of listings that had canceled. We noted, understandingly, that December was a time that a lot of unsold listings jumped out for a while before returning in the new year.

We covered 10 quitters then. (See "A Cascade of Quitters.") But the legions of sellers saying "outta here!" have hit that threshold again in just the last 3 weeks.

So much for Summer, eh?

Here are 10 recent dropouts:


Hill Section

• 619 9th (4br/4ba, 3350 sq. ft., last at $3.969m) (pictured) was a different sort of home with some sweet touches. Big layout challenges, with 2 of those 4 BR on the first floor, one really tucked away. Most buyers would want to vastly remodel & update.

• 864 11th (5br/5ba, 3775 sq. ft., last at $3.2m) has a lot of charms, including a large lot (7950 sq. ft. ) and a garage tucked away behind. It was a quiet listing that flitted away amid growing supply above $3m in the Hills.

• 701 Dianthus (5br/5ba, 3600 sq. ft., last at $2.499m) eventually dropped below its Feb. 2006 purchase price of $2.53m, and that was only part of the story. The owners had spent (they said) upwards of $150k on customizing details after acquiring the home. But they had to go. (See "Job Transfer Blues.") Perchance it's rented out?

Sand Section

• 224 31st (5br/5ba, 4200 sq. ft., last at $4.595m) (pictured) had a lot going for it – a newer (2005) home west of Highland with max square footage. They started high at $4.995m but, by the end (325+ DOM later), were begging for any "reasonable" offer. So what's wrong with the west-of-Highland market to suggest that no "reasonable" offer ever came?

• 505 3rd (4br/3ba, 2600 sq. ft., last at $1.798m) is, frankly, a terrible house, which is the best explanation for its lingering for more than a year. The "sellers" (we use the term loosely) were the folks who picked it up for $1.6m in September 2005, probably thinking "rent it short-term, then flip it for a profit." This one ran as high as $1.949m, and even posted a couple escrows (failed). (See "What's Right for 505 3rd?") The worst blow to this listing came when nearby 437 1st, cleaner, fresher and comparably sized, sold for $1.610m in early June.

• 452 36th Place (teardown at $1.365m) tried for a couple of months, and that was it.

Tree Section

• 769 33rd (new, 6br/4ba, 5000 sq. ft., last at $3.950m) (pictured) came on with much ballyhoo – indeed, there was a long pre-completion listing that touted the benefits of the upcoming, gorgeous new Spanish. The first public-offer price was $4.5m, but $550k came off that quickly as the home was completed.

Don't get us wrong, it's a charmer with a lot that's ginormous for the Trees (7800 sq. ft.) and a Master Suite that might, just might, be bigger than your typical Four Seasons suite. (Depends on the city you're visiting.) Somehow, this price didn't work and the new home canceled after a couple of months post-completion.

Next-door neighbor and newbie 3305 Laurel, by the same builder, also dropped out after about 300 DOM and, given that it's occupied, would appear to be rented out. So, 33rd?!?

• 1825 Oak (new, 4br/4ba, 3125 sq. ft., last at $2.299m) is a lovely custom Spanish (or even Santa Barbara) that the developing couple decided to unload. Alas, they could not, as much-better-located newbies started to slip closer to $2m.

• 848 12th Ct. (4br/4ba, 3250 sq. ft. at $1.999m) backs up onto MBB, and therefore drew little interest at the $2m price point over 5 months.

• 672 19th (3br/2ba, 1675 sq. ft. at $1.789m) (pictured) now appears to have been a lark by the owners. MBC got some sharp criticism for calling this one out as a case of owners who overpaid looking for far too much to get out. (See "Be Their Guest.")
  

To summarize, the neighbors bought their neighbors and used the crusty older house as a guest house after merging the back yards. Great if you can make it work, but if you overpay for the neighboring lot, don't expect a rescue, not in the short term.

We don't believe that all of these were toe-dippers or market-testers. New construction, in particular, is always a shock when it drops out of the public market.

As we must, always, we note that any of these recent MLS-quitters could come back. And if they do, they'll likely try to hide their history. So now you know a part of the backstory, hoping that this helps you, too.

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UPDATES:

The day this story was published, another dropout occurred – 341 10th, a South End walkstreet home that had been trying to sell for most of 5 months. Began at $3.3m, canceled at $2.799m.

Also we learned that 224 31st (pictured and mentioned above) has become a "pocket listing" for Blake & Diana Roberts, albeit a pocket listing that's now posted online. The home is offered at essentially the same price – $4.599m – but also for rent at $12k/mo.

Open Forum (8/11-8/17)

Time to open it up anew.

We begin with some statistics helpfully placed in the Easy Reader (current edition) by way of a paid ad by a major local realty concern:

ALL BEACH CITIES (MB, HB, RB + El Seg.)

June 2008 home sales: 116 (-36.3% YOY)

Inventory: 720 homes (12-month high)

Months' supply: 6.2 (up from 3.2 in June 2007 – based on closed sales in each month)

A lot of people will call 6 months' worth of inventory "normal" or even a buyers' market.

Against those downbeat notes, there was this silver lining: median price for all beach cities was down 1.1% YOY, at a time when LA County was down 23.9% for the same period. The advertorial speculates that this fact has something to do with greater relative demand for higher-priced properties.

Are we weathering the storm, or are the clouds just now gathering?

Also, this bit of intriguing information – Fannie Mae, which is getting pummeled again, now has a stock value ($8.40 at close Monday) last seen in early 1991. It's now 10% of the peak value from earlier this century – i.e., a few years ago. That grim comparison is before we adjust for inflation, which wouldn't be pretty.

And Fannie is supposed to help rescue everyone else.

As always, please use the "Open Forum" thread for news clips, off-topic questions & discussions of any nature. And keep it clean.

Results: First to $6m

Last week MBC published a story on the growth in supply of high-priced homes in the Hill Section. Whereas, for much of 2007, total inventory in the Hills lingered near 15 SFRs from month to month, last week there were 15 homes priced at $3m or above, with total inventory at 25. (Two Hillies canceled after that, so we're at 14 and 24 now.)

Three of those 14 clustered near $7m, and it was our sense that maybe all 3 are still priced high by as much as $1m. So we put the question up to a vote: Which of the 3 would drop to (or sell for) $6m first? (See "Who'll Be First to $6m?")

The poll did not draw the most excited responses. And you know why. The fate of $7m listings is no one's priority, other than the sellers'. Alas, we live, blog and learn.

Still, the poll results were clear: 114 N. Poinsettia (pictured) was viewed as most likely to drop first. With 4 options to choose from (the 3 listings plus "none"), more than half (52%) of those voting chose Poinsettia. That's a clear mandate.

700 8th finished second with 17% of the vote, "none" took 15% and 923 1st seemed least likely to sell or drop below $6m, garnering 13% of the vote.

Why did Poinsettia "win" this vote? Location, for sure.

If you know the Hill Section, the notion of combining 2nd with Poinsettia might send shivers down your spine. Big strike for this home.

To compound matters, to maximize views, the house is actually built in an L-shape that is oriented toward the 4-way stop at the corner of these two busy streets. The front-yard pool (really?!?) is exposed to the intersection.

The home is inspired, stylewise, but it has farther to fall from $6.995m.

It's worth noting here that the most on-point comp for this listing is 116 N. Dianthus. That's a brand-new home also on a corner with 2nd St. – albeit much further up the hill. It was purchased during construction last October for $7.2m (sale closed in late April this year).

116 Dianthus has some things 114 Poinsettia doesn't:

• a bit more square footage (6600+ against 6400 at Poinsettia);

• bigger lot (8125 vs. 7500), affording a nice back yard; and

• orientation away from 2nd – to the south and west with PV/Catalina views.

And don't ignore the big-name, high-quality builder on Dianthus or the fact that, in buying during construction, the buyer had plenty of opportunity to customize the home.

Some of the assets on Dianthus would properly be labeled premiums, whereas Poinsettia is suffering from issues and vulnerabilities. Poinsettia is barely in the same league, which could become ever more obvious as the market works its magic on that price.

Sunday Opens (8/10)

The lifeguard competition around the pier the last few days was 100 times more serious than last weekend's 6-person volleyball tournament. You want your local beach Olympics? Right there.

Bonus: The lifeguards didn't choke the city like "Hermosa for a Day."

We certainly hope you're enjoying the long days, warm water and cold summer nights. If you're thinking of staying, or upgrading, check out some of these offerings Sunday afternoon.

Click here for the complete list of opens published in the Beach Reporter, or at any time use the link in the right-hand column under "Prop. Search Tools."

As always, click any highlighted address below for more pics & details via Redfin.


Hill Section

724 11th has been hovering for more than 5 months now, infrequently open, now one of 14 listings in the Hills above $2.999m. But it's worth a look.

The "French-influence[d]" home boasts two undeniable assets – ocean views and easy proximity to downtown. It's not the biggest offering in this price range, with 4br/5ba and 3300 sq. ft.

The sellers shot high at first, asking $3.499m. Alas, the home's vacant, and a deal seems likely to happen – some day. It's down already to $3.199m, and buyers who dig the home's upsides may have some real leverage. Open Sun. 1-4pm.

1031 Boundary is not your CEO's Hill Section estate. It's funkytown, alarmingly near to Sepulveda, and, of course, Boundary Place is an alley. But you do get plenty of space (3br/3ba, 2950 sq. ft.), a large lot (6800 sq. ft.) and some ocean peeks for $1.499m (down $200k/-11% from start). Open Sun. 2-4pm.


Sand Section

224 32nd is a big-time remodel of a 1989 home. It boasts commanding ocean views, Strand proximity and near-the-max living spaces (4br/5ba, 4250 sq. ft.).

We'll be honest and say it's a bit cold right now; would benefit from some staging and a few potted plants. The finishes leave much to be desired as well.

The building was purchased for $2.8m in Sept. 2005, flipped for $3.090m just 6 months later, before the remodel, and is now offered, nearly all-new, at $4.790m. Open Sun. 1-4pm.

232 5th Place (at the corner with Highland) is for sale only about a year after it was last purchased (March 2007).

It's a pleasant, shingled beach home with 3br/3ba and almost 2050 sq. ft. on a half lot (1350 sq. ft.). The owner paid $1.750m and now requests $1.825m.

Open Sun. 1-4pm.


Tree Section

700 35th has been around only about a month. The sellers have lived there just 2 years. They paid $2.482m and now seek $2.649m (+167k/+7%). (They began at $2.697m and quickly re-listed with a cut.)

Mrs. MBC thought about picking 700 35th this week, for its positive attributes, but she balked at the price. (Both the '06 and '08 prices.)

She's all for a spacious (5br/4ba, 3675 sq. ft.), newer home on a corner-lot with a yard. Having walked by several times, she likes this specific home and location. But she prefers steals & deals and unique homes, and that's not 700 35th, not yet. Open Sun. 1-4pm.

2105 Walnut is peculiar; spiffy in parts, very dated in others, featuring a lot of hardscape for the outdoor spaces. For our money, a home that must tout its "potential" and the possibility of adding on, or having grass, is a home that should be sharply discounted. This one, offering 3br/2ba and 1625 sq. ft., began high at $1.299m and is now at $1.175m. You need to see it yourself to know if you see the potential, too. Open Sun. 1-4pm.

841 12th Ct. is a dated fixer with 3br/1ba, almost 1400 sq. ft., and a lot that's 5000 sq. ft. (Featured this week on MBC – see "A Quick Lot Flip.") Purchased only days ago for $950k, it's now offered at $1.1m. Open Sun. 1-4pm.