$1.5m Off the Top

Posted by Dave Fratello on Tuesday, February 3rd, 2009 at 10:56pm.

Up high in the Hill Section – we mean that in a couple of ways — there are a couple of large ocean-view estates just steps away from one another.

700 8th St. is quite large (5br/5ba, 4925 sq. ft.) and offers those big-blue-marble ocean views you want from up there. It hit the market last year for $8m and sold in Sept. 2008 for $6.9m. (See "Levitating," Sept. 30.) The new owner almost immediately faced a change in plans, and put the home back on the market in November for less: $6.75m, where it stands today.

Hovering above 700 8th in price for quite some time was a somewhat larger home at 801 Highview (pictured). This one offers 6br/8ba and 6,425 sq. ft. – 30% more living space on a lot that is somewhat smaller than 8th. It began at $7.495m in October.

As MBC has noted before, these big-dollar listings also seem to take the steepest cuts when they make a move.

And so it was at 801 Highview, which cut $1.5m Tuesday in a single move. Suddenly, the larger home is notably less expensive, with a new price of $5.997m.

Now, in the rarefied world of $5m+ Hill Section estates, which is the better deal?

Wait, there's more. Around this price point, the Hills are getting crowded. There's also:
  • 1011 Pacific (6br/5ba, 6035 sq. ft.), now at $5.495m (down $500k from $5.995m);
  • 612 John (6br/8ba, 7400 sq. ft.), now at $6.3m (down $1m from $7.3m); and
Many of these listings began in Q4 2008, a dreary time to launch. The buyer pool has only shrunk since then. Today's cut at 801 Highview will refresh it for a while, but will it provoke new cuts nearby?

True, most of us don't have the problems these sellers have, but the travails of the high end inevitably matter to everyone in the market.
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