A Boost Over '07?Posted on Monday, September 27th, 2010 at 4:06am.
One new listing is going to try for a little markup. We'll see how it plays out.
It's 417 2nd (5br/5ba, 4325 sq. ft.), a newer (2004) Cape Cod on a corner lot at Crest, which the listing describes simply as "the finest" Cape Cod in the Sand.
Big claim. Oh, the agent built it.
There was a pretty big jump in this home's market value between 2004-2007.
A listing logged 30 DOM in 2004, but looks like a pre-completion sale. (The listing noted "new construction" and was listed for sale by the builder.) Regardless, the sale price was $2.1m in March '04.
The owners solicited buyers at $3.599m in Sept. 2006, and though that listing officially canceled, a sale was made for $3.507m in March 2007.
That's a shockingly healthy $1.407m markup, +67% over 3 years.
Did the median price for MB rise 67% over those 3 years?
Now 2nd is back with a fairly modest request for a markup to $3.579m (+$72k/+2%). But that's not the sort of thing that's working for most 2007 resales this year.
Maybe 417 2nd will continue to defy gravity, but first let's check in on a few other listings and sales to see if it makes sense to seek a markup over 2007 prices these days.
We can look first at a couple of South End bretheren, homes that aren't at all like 417 2nd, but nearby anyway (see "Goin' South"):
- 88 Manhattan Ave. (3br/4ba, 2150 sq. ft., TH) traded for $2.2m in Nov. 2007, and is currently offered back at $1.799m, a $400k drop in value (-18%).
- 420 1st (2br/2ba, 1000 sq. ft.), an odd little 2-building cottage next to a school parking lot, acquired for $1.075m in June 2007 and, quite recently, offered for the first time below acquisition at $999k (-7%).
- 3212 Maple (5br/4ba, 3450 sq. ft.), a pretty great newer Mediterranean – as these things go – was purchased for $2.5m in June 2007, and has been listed most of 2010 at $2.199m (-$301k/-12%), with no takers yet.
As mentioned in the most recent South Bay Confidential column,
- 1018 2nd (3br/3ba, 1900 sq. ft.) in the Hills nabbed $1.950 in May 2007, but sold 3 years later for $1.545m (-$405k/-21%).
- 1516 Highland (3br/4ba, 2225 sq. ft.) went for $1.795m in March 2007 before a remodel, netting just $1.6m (-$195k/-12%) this past June.
- 2305 Pine (3br/2ba, 2000 sq. ft.) sold for $1.577m in Aug. 2007, but was worth $1.400m (-$177k/-11%) here in July 2010.
Now, you'll notice the dearth of true comps there to 417 2nd, just plenty of other 2007 acquisitions, many with some challenges.
The series of list/sale prices compared to the 2007 acquisitions: -7%, -11%, -12%, -12%, -18%, -21%, -38%.
We're still looking in MB for a sale that's sporting a markup over 2007, but we haven't seen it yet.
But we'll keep watching 2nd, or anywhere else, to see if someone can make it happen.
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