We can close the books now on one of the homes MBC has expressed some appreciation for more times than many others – 916 9th
in the Hill Section.
Our first story noted that the sellers were hoping for a a "modest" 50% markup over their Nov. 2003 purchase price. As that story began:
It's not crazy to ask for ask for 50% appreciation over 4 years, right?
Not these past 4 years.
It didn't happen fast – that story (see "A Modest +50% in the Hills
") was published 8 months ago – but the sellers got most of their demand: a 41%
markup, selling at $2.825m
, a cool $825k more than their purchase price ($1,999,500
We would note that the listing first started out at $3.275m
in 2007, so the sale price does reflect diminished ambitions (-$450k/-14%).
Still, the take-home is perfectly impressive. And we know the new owners have a great new home.
For some added perspective, we went back to our DataQuick charts and determined:
- The increase in median prices in MB (based on a 12-month moving average) over about the same period (Nov. 2003-Q1 2008) was 56% in nominal terms (dollars of the day), meaning these sellers did somewhat less well at 41% appreciation than you might have expected based only on median price data.
- The sellers paid the equivalent of $2.366m in current dollars (actually Q4 2007) when they bought the home 4 and a half years ago. Of course, that doesn't mean they had any less than $825k in their hands at the close of escrow last week, just that the value rose only about 20% in real-dollar terms in the time since they moved in.
Our inflation adjustments use the deflator for residential investment, a separate data series from the consumer price indices for other kinds of goods.