builders 
There are currently 27 blog entries related to this category.
Failed Auction, New Deal
Thursday, June 18th, 2009 at 4:23am. 129 Views, 0 Comments.
There's a new act opening in the saga of 2509 Palm, one of the failed auction houses: It's got a buyer.Oh my, a nice little pickup in sales in the Tree Section has actually spilled all the way over to one of MB's longest-running listings west of Sepulveda.
The backstory on this one goes way back... Back more than 2 years to April 19, 2007, in fact.
That's when this particular cookie-cutter speckie (5br/5ba, 3150 sq. ft.) was first offered to the public. Start price: $2.449m.
Just stop a moment to consider – what were you doing in April 2007? And how did you feel about the local RE market? Yes, things are different now.
For 2509 Palm, the clock ticked, the market changed, and eventually the home's twin at 2509 Walnut sold (for $2.025m, July '08). Still, they…
A Builder's Take
Sunday, January 13th, 2008 at 5:06am. 291 Views, 0 Comments.
You know things are getting strange in the local real estate market when a noted builder takes out a half-page ad (click to enlarge) not to market a home, but to persuade fence-sitting buyers that prices "will not and cannot come down another 10% this year."We'll reproduce the text of the ad here and comment below:
The Crystal Ball Story
Advice for New Home Buyers
I've been in the real estate development and sales business in the South Bay for more than thirty years and you can rest assured that prices on new homes will not and can not come down another 10% this year. Here's why:
New homes currently on the multiple listings service that are between $2.1 million to $2.6 million were purchased as building sites in the ballpark of $1.3 million (cost to purchase…
The Mystery of 2310 Palm
Friday, January 11th, 2008 at 5:04am. 170 Views, 0 Comments.
A funny thing happened to MBC on the way to publishing a nice little exposé. The substance of the story changed – for the better.So, while we don't exactly have a scandal to discuss, we'll walk you through the chronology of events, as we saw them, on the sale price at 2310 Palm.
Close readers of MBC know we've been on the trail of the mystery of the final sale price of 2310 Palm for a while. This home was newly built in 2006 (5br/3ba, 3150 sq. ft.), and we rather liked it for its distinctive, authentic-feeling Spanish details. We also noted some strikes against the property when we wrote it up (see "The 1-Year Club in the Trees").
When the home went into escrow in late October, after 443 DOM, the MLS listing was canceled, rather than being posted as…First Newbie Under $2m
Friday, November 16th, 2007 at 6:39am. 127 Views, 0 Comments.
We know the situation is tough for new construction in the Tree Section.Until recently, however, new stuff in the Trees always started over $2m. Certainly, since Spring this year, that's been the case. No new home has been priced at, or sold for, less than $2m.
Breaking the pricing mold: 1144 Elm, a 2-week-old listing that otherwise fits the basic profile – 5br/5ba, 3300 sq. ft., and a standard 4480 sq. ft. lot. It started $5k below $2m, at $1.995m.
The home has character inside, with good living spaces downstairs, nice detail work in the kitchen and baths, even kids' bedrooms that don't seem too scrunched. It's bright, too, despite a northern orientation – apparently a good use of skylights.
So why is a very decent new build priced, achem, low?
Consult your…
The 1-Year Club in the Trees
Monday, October 29th, 2007 at 4:31am. 155 Views, 0 Comments.
No one really denies that there's a glut in the $2m+ segment in the Tree Section. And no one seems to have any big ideas about what to do about it.
MBC focuses here on the special problem of new construction that has lingered for more than a year. What might these homes foretell for the fates of others that don't get snapped up fairly soon?
Of the 30 homes now active in the $2m+ segment, 23 are newly built. Three have been offered for more than a year. Let's look at each, and see what might be holding people back:
2310 Palm (click for details) is a bit of a surprise on this list. It's lovely. No stapled-on stone. The location is good. Materials inside are well-chosen, carrying an authentic-feeling Spanish flavor throughout. It has tons more character than…
MBC focuses here on the special problem of new construction that has lingered for more than a year. What might these homes foretell for the fates of others that don't get snapped up fairly soon?
Of the 30 homes now active in the $2m+ segment, 23 are newly built. Three have been offered for more than a year. Let's look at each, and see what might be holding people back:
2310 Palm (click for details) is a bit of a surprise on this list. It's lovely. No stapled-on stone. The location is good. Materials inside are well-chosen, carrying an authentic-feeling Spanish flavor throughout. It has tons more character than…The Race to $2.1m, and Then...
Wednesday, October 24th, 2007 at 3:55am. 135 Views, 0 Comments.
Several weeks ago, the "lower end" of the Tree Section's $2m+ segment saw much new construction clustering around $2.3m. For instance, at the end of July, there were no new homes under $2.3m, and at the end of August there were 3 under $2.3m.
Now there are 5 new construction listings under $2.2m, and another at $2.249m.
Could this be the beginning of the builder-initiated price movement we've been watching for? (In "Quitter – Bellwether," just last week, we said it seemed that no such movement was happening. What a difference a week makes.)
This new clustering is partly the result of 3 price cuts this week. Let's look at everything at $2.249 and down to $2.0m – remember, these are all new construction (click any address for details):
Now there are 5 new construction listings under $2.2m, and another at $2.249m.
Could this be the beginning of the builder-initiated price movement we've been watching for? (In "Quitter – Bellwether," just last week, we said it seemed that no such movement was happening. What a difference a week makes.)
This new clustering is partly the result of 3 price cuts this week. Let's look at everything at $2.249 and down to $2.0m – remember, these are all new construction (click any address for details):
- 2105 Oak (5br/5ba, 3250
Quitter - Bellwether?
Thursday, October 18th, 2007 at 5:34pm. 128 Views, 0 Comments.
After more than a year on the market, the new construction at 2709 Oak is gone.The house is still there, of course, but the agent's signs are down, it's off the MLS, and who knows what's next. We're guessing it went rental, as the home was offered for a time at $8,500/mo. (See "Just Rent It.")
New construction nearby at 2609 Oak similarly vanished from the MLS in July after 425 DOM. We also guessed rental there.
2709 Oak was listed at $2.299m for 5br/5ba, 3600 sq. ft. The listing began at $2.395m on Aug. 15, 2006, so it never took big price cuts from there. In parallel, 2609 Oak started at $2.399 a few months earlier, and never cut below $2.299m before quitting.
2709 Oak was (is) quite lovely, a spacious feel, bright, with big kids' bedrooms (no sardine cans…
The $3m Club in the Trees
Wednesday, October 10th, 2007 at 5:20pm. 171 Views, 0 Comments.
The higher end of the Tree Section includes 30+ homes listed at $2m+.
This segment is largely stalled, with very few sales or new escrows since mid-July. There are no sales from among MLS-listed properties pending at this time.
Drawing MBC's interest today is the even more rarefied $3m+ segment.
As builders have pushed up the price ceiling recently, they've had some success. Sales since Spring:
This segment is largely stalled, with very few sales or new escrows since mid-July. There are no sales from among MLS-listed properties pending at this time.
Drawing MBC's interest today is the even more rarefied $3m+ segment.
As builders have pushed up the price ceiling recently, they've had some success. Sales since Spring:- 925 27th (5br/6ba, 4150 sq. ft.) – $3.0m
- 2104 Palm (5br/6ba, 4500 sq. ft.) – $3.025m
- 2802 Pine (5br/4ba, 3600 sq. ft.) – $3.1m
- 927 27th (5br/6ba, 4400 sq. ft.) – $3.15m
- 717 31st (5br/4ba, 3500 sq. ft.) – $3.2m (pictured)
- 712 31st (5br/4ba, 3800 sq. ft.) – $3.325m
Scaffolding is Down, So's the Price
Friday, September 21st, 2007 at 6:05pm. 146 Views, 0 Comments.
The builders have made impressive progress at 4419 Highland (45th/Highland). With the stucco team finished, we just need to wait for the interior to be built out and this one will be ready for walkthroughs.MBC has to admit, this home looks a bit better than expected, and of course it's a giant improvement over the wrecked shack that used to occupy this lot.
We do find it a very strange use of stapled-on stone for one corner to feature stacked rock. What structural purpose would be served by having a single corner built from stone, if it were real? This is just a perplexing accent.
To celebrate the end of exterior construction work, as the scaffolding came down, so did the price. The listing began at $1.695m – let's be honest, that was ridiculous – back on…Sound the Trumpets: John is Sold
Tuesday, September 11th, 2007 at 10:29pm. 115 Views, 0 Comments.
Here we go with another big-dollar sale in MB...
512 John is pending at last. Most recent list price: $3.99m.
The full saga as covered on MBC includes:
512 John is pending at last. Most recent list price: $3.99m.
The full saga as covered on MBC includes:
- A discussion of the home as a "masterpiece" and evaluation of the rental option ($20k/mo.).
- News about the $400,000 price increase mid-listing, featuring this quote:
- Description of the $750,000 price cut which guaranteed the current owners a net loss.
- A story this week estimating those losses at $316,000 (with 6% cost of sale, which may or may not apply here).
