A 41-Day Wait; A Big Score

Posted by Dave Fratello on Tuesday, September 11th, 2007 at 4:59am.

At last, there has been a sale in the Trees at $2m+. And this was a big one: Over $3m.

The last reported new escrow in the Trees (from MLS-listed homes) came on July 31 – 2104 Palm, as noted in "A Trickle."

Fully 41 days later, we get the report that new construction on highly desirable 31st St. is in a contingent escrow (717 31st, that is).

Start price on this one was $3.449m on April 19. Three months later, the slate was wiped clean with a re-list and a modest price drop to $3.379m.

(An aside: You think the "CDOM" field ["combined days on market"] seen by realtors is the honest fallback number everyone can trust? Don't believe it – today, we're informed that the CDOM on this home shows 66 days, not the truthful 144 days.)

So, two months after re-listing, and having witnessed the near-stoppage in the market since early August, did the builder offer a significant discount? It would seem willing, qualified buyers in today's market can name their prices. We shall see.

This new escrow raised another important question – what else, from the MLS, has gone into escrow since Sept. 1? Our records say:
  • Hill: zero
  • Sand: 217 Sea View ($1.520m), 216 2nd (under construction, 1 DOM, $4.699m), 1212 The Strand ($10.9m)
  • Trees: 717 31st ($3.379m)
Also, 217 9th St., new construction near downtown, went from sold with a final reported price and closing date, back to pending. We're sort of tiring of this back-and-forth.

So, we count 4 new escrows in our subject market segments (west of Sepulveda, SFRs only). We have a new record for a Tree Section drought – 41 days eclipses 25 days without a sale in the $2m+ segment.

But some folks are happy. And just imagine how those sales will skew the monthly median price when they close. Isn't it a sign of a healthy market when the median price keeps shooting skyward?

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