A 22% Markup Over the Bottom

Posted by Dave Fratello on Wednesday, March 13th, 2013 at 5:15pm.

When last we called attention to 1126 Laurel, it was last November, to label the home "Such a Deal in '09."

Without irony, we noted that the new, 2012 listing for this fairly large TH (4br/3ba, 2300 sq. ft.) near downtown was a sign that "2009 was a great time to buy."

2009: a great time?

Of course, to be living and shopping for real estate in early 2009 seemed like more of a horror show at the time. The local market had been dipping for a couple of years and the economy didn't look so good. (Pause a moment to recall, and the understatement here is apparent.)

If you bought then, you had plenty of reason to fear that equity would start leaking out the windows as soon as you got the keys.

But now we see what can happen when you buy on the dip.

In 2009, 1126 Laurel was a new TH, one of 2 built together on an unusual, trapezoidal lot fairly near downtown and somewhat near MB Blvd.

Listed at almost $1.3M, it actually sold for $1.037M in July 2009.

In Nov. 2012, it came out 35% higher, at $1.399M.

That price wasn't to be, for the home has an irregular layout and some question marks around it.

But the sellers did great, selling for $1.265M in a deal that closed last week.

That's a jump of $228K in about 4 years, and +22% over acquisition. It's also just $25K short of the start price from way-back-when, when the TH was new in March 2009.

Whatever might have motivated the purchase or sale here at 1126 Laurel, it has provided an example of buying low and selling high. And the resilience of Manhattan Beach real estate after a true stallout just a few years ago.

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MB Confidential readers: Get an early look at 700 27th St., a warm modern in an ideal corner-lot location. This property does not hit the MLS till next week. Asking $2.250M.

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