May 2007 
There are 24 blog entries for May 2007.
14 Years New
Thursday, May 31st, 2007 at 6:30pm. 183 Views, 0 Comments.
You have to love the breathless optimism of home listing language.
Where else can you find beauties like:
This home was 99% new in 1993. Wow, so was Bill Clinton's presidency.
This from the pre-owned home at 132 18th St., asking $4 million in today's dollars.
Thanks to Shorewood agent Fred Zuelich for a morning chuckle.
Where else can you find beauties like:
This home was 99% new in 1993. Wow, so was Bill Clinton's presidency.
This from the pre-owned home at 132 18th St., asking $4 million in today's dollars.
Thanks to Shorewood agent Fred Zuelich for a morning chuckle.
Appreciation Has Ended, S&P Says
Wednesday, May 30th, 2007 at 7:00am. 116 Views, 0 Comments.
There's a reason people believe that real estate values always go up.
For 16 straight years, home prices appreciated to some extent every year, according to a measure known as the Case-Shiller Home Price index.
Tuesday, Standard & Poors issued the newest version of the index, and it shows "negative annual returns."
If we dissolve down the fine print, that means that nationwide, homes sold in the first quarter of 2007 were sold for less money than homes sold in the first quarter of 2006. Home price appreciation has ended. (The graph doesn't show prices, but rates of change year-over-year. Click here for bigger version.)
According to S&P:
This is only the second time in the quarterly national index’s history that the annual growth rate has fallen into negative…
For 16 straight years, home prices appreciated to some extent every year, according to a measure known as the Case-Shiller Home Price index.
Tuesday, Standard & Poors issued the newest version of the index, and it shows "negative annual returns."
If we dissolve down the fine print, that means that nationwide, homes sold in the first quarter of 2007 were sold for less money than homes sold in the first quarter of 2006. Home price appreciation has ended. (The graph doesn't show prices, but rates of change year-over-year. Click here for bigger version.)According to S&P:
This is only the second time in the quarterly national index’s history that the annual growth rate has fallen into negative…
Maybe our price was too low, that's it
Sunday, May 27th, 2007 at 5:06pm. 103 Views, 0 Comments.
It's been five months since you listed your house, and no one is buying. What do you do?
Try price reductions. Try re-listing to hide the history of the house.
At 579 29th St., newer construction (2002) in the Tree Section, both tactics have been tried. Since the Dec. 7, 2006, listing at $2.575m, the sellers dropped the price to $2.400m and re-listed a couple times.
Since that didn't work, here's a new approach: A $120k price increase.
That's right. A house that had been at $2.4m is now re-listed at $2.519m.
Here's a hint to Tree Section buyers in the $2.5m range... they'll take 2.4!
MBC reported a while back about two homes that tried the price-increase tactic. One has subsequently dropped $250k. The other is still sitting out there untroubled by interested…
Slip-Sliding on Oak
Saturday, May 26th, 2007 at 5:06pm. 119 Views, 0 Comments.
Can a home lose $300,000 in value in little more than a year?
At 1313 Oak, the list price has been adjusted that sharply since the house first came up last year. Beginning April 11, 2006, these contemporary digs were offered at $2.799m.
Today: $2.490m, or $309k less.
The price was adjusted once last summer to $2.650m, but apparently that wasn't enough. With no takers, the home went off the market in December and only now has come back.
Reductions like this in asking prices tell us something, though there's no science to it. Chalk up this big drop to both an unrealistic seller and a softening market.
At Oak, you get 4br/4ba and 3550 sq. ft. for your $2.5m. In a twist, you get free furniture:
... being sold fully furnished (home has been designed w/custom…
At 1313 Oak, the list price has been adjusted that sharply since the house first came up last year. Beginning April 11, 2006, these contemporary digs were offered at $2.799m.
Today: $2.490m, or $309k less.
The price was adjusted once last summer to $2.650m, but apparently that wasn't enough. With no takers, the home went off the market in December and only now has come back.
Reductions like this in asking prices tell us something, though there's no science to it. Chalk up this big drop to both an unrealistic seller and a softening market.
At Oak, you get 4br/4ba and 3550 sq. ft. for your $2.5m. In a twist, you get free furniture:
... being sold fully furnished (home has been designed w/custom…
Bogus relist of the week
Friday, May 25th, 2007 at 3:56am. 109 Views, 0 Comments.
MBC has commented before on the annoying practice of "re-listing" homes to conceal their recent market histories.
Today's offender is 3104 Maple, new construction in the Trees. Today marks its 246th day since first going on public offer (Sept. 20, 2006).
But with a fresh new MLS number, today it's got ZERO days on market!
There's not even a new price to go with the new listing. It's still at $2.549m, a token $50k off its initial list, but that reduction was made some time ago.
It boggles MBC: Who is supposed to be fooled by these relistings?
Let's assume a buyer is working with a competent realtor at some point – they're going to get the real story. If the property has been lingering like this, you're in a good position to seek some sort of bargain. Your…
Today's offender is 3104 Maple, new construction in the Trees. Today marks its 246th day since first going on public offer (Sept. 20, 2006).
But with a fresh new MLS number, today it's got ZERO days on market!
There's not even a new price to go with the new listing. It's still at $2.549m, a token $50k off its initial list, but that reduction was made some time ago.
It boggles MBC: Who is supposed to be fooled by these relistings?
Let's assume a buyer is working with a competent realtor at some point – they're going to get the real story. If the property has been lingering like this, you're in a good position to seek some sort of bargain. Your…
Getting the Two-Year Itch
Thursday, May 24th, 2007 at 11:36pm. 116 Views, 0 Comments.
There are any number of reasons people sell their homes.
But when you see one go up for sale almost exactly two years after it was last purchased, you might first guess that the sellers are thinking: Tax-free profit!
Thanks to our tax code, you can reap up to $500k in capital gains (for a couple) on a home sale tax-free. You just have to have made it your primary residence for 2 years.
Today in MB (west of Sepulveda), records indicate these active listings were purchased in late 2004 or in 2005:
But when you see one go up for sale almost exactly two years after it was last purchased, you might first guess that the sellers are thinking: Tax-free profit!
Thanks to our tax code, you can reap up to $500k in capital gains (for a couple) on a home sale tax-free. You just have to have made it your primary residence for 2 years.
Today in MB (west of Sepulveda), records indicate these active listings were purchased in late 2004 or in 2005:
- 3009 Highland – paid $1.225m in 7/05, selling for $1.369m
- 737 36th St. – paid $1.230m in 3/05, selling for $1.785m
- 2812 Elm – paid $1.584m in 6/05, selling for $1.769m
- 1800 Laurel – paid $1.6m in 12/04, selling for $2.35m (remodeled)
- 225 1st St. – paid $1.685m
714 MBB Quits
Thursday, May 24th, 2007 at 1:27am. 131 Views, 0 Comments.
Just a couple of weeks after being undercut, the listing at 714 Manhattan Beach Blvd. (MBB) has been canceled.MBC takes no pleasure in this. The seller just bought the home in April '06 for $1.355m and apparently needed to sell it again just months later, but now things are looking grim.
The neighbor at 710 MBB is still at $1.249m and they have room to cut further, having paid $849k in October '03.
Right now the pricing is controlled by a relocation company, and you don't want to compete with that.
Best advice: for now, lay low and wait for a sale at 710 before re-listing.
First Markdown for the Fishbowl
Wednesday, May 23rd, 2007 at 4:19pm. 137 Views, 0 Comments.
New construction at 300 N Dianthus has been marked down $100k now, after 5 weeks on the market.
Is that enough to compensate for the Master Bedroom?
List price is now $4.395m.
Is that enough to compensate for the Master Bedroom?
List price is now $4.395m.
Update on 45th & Highland
Tuesday, May 22nd, 2007 at 3:46am. 135 Views, 0 Comments.
Some time ago, MBC discussed new construction at one of the least desirable Manhattan Beach locations, 4419 Highland Ave.Optimists might call it "The Gateway to Manhattan Beach," since it's the first house drivers pass coming from the north via Highland Ave.
Realists will note that the lot is very tiny, on a terribly busy street, and has a gas station for a neighbor. Yes, you can see the ocean, but you can also see a power plant, electrical lines and the Chevron refinery tank farm. Long lines of rush hour traffic snake by slowly, six feet from the house, for 3 hours every weeknight.
This home, still actively under construction (we checked after a commenter suggested there was a halt), is now listed for sale at $1.695m. This is only found in a print ad in the…