Cutting Time Again

Posted by Dave Fratello on Saturday, January 12th, 2008 at 6:38am.

With the holidays, not only did we see bunches of listings cancel, there was a virtual moratorium on price cuts among actives for a few weeks. Why cut if no one's looking?

Now we're starting to see a little price-cutting action. We'll focus on three marginal listings first:
  • 4419 Highland, sometimes called "The Gateway to Manhattan Beach," has cut $50k more and is now at $1.398m. (Click address for details via Redfin.) It's now down about $300k/-17% from its start. And now, completed (and staged), it's priced $1,500 below the builder's offering price via Craigslist in March 2007. (See "Builder Rethinking Dubious Lot?") Yes, they wanted someone to buy the project midstream on the promise of riches to come once the home was built. Instead, we're all but certain this works out to be a money-loser for the developer. Location, location...
  • 2709 Oak, a large new home that has lingered for over 500 DOM, has cut another $150k and stands now at $2.049m. That's down $346k/-14% from its start shortly after the moon landing. We'll say it again: we love this house, but we just can't envision paying $2m to live in that location.
And here's a wrinkle – a while back, a different listing agent said in no uncertain terms that the seller wouldn't go below $2.050m. We're guessing that that position is evolving. Another loss for a developer? The only cheaper newbie in the Trees is 1144 Elm. For now.
  • 462 36th Place, which MBC highlighted (lowlighted?) as "A Real Turkey" some time back, has chopped $30k (ho hum, -3%) and stands at $899k. Oh, those of you who find that price intriguing, be warned, and read our earlier story.
Meanwhile, another marginal listing, 1019 11th in the Hill Section, took a second cut. Both cuts were so tiny as to merit mention only because they're such silly marketing. Before the new year, the listing cut $500 (no k's or m's there, just $500.00), and now it is down another $900.00. Wow. Now: $1,197,600.

Someone deserves credit for a real cut, and it's 420 30th, up on the plateau in the Sand Section. We haven't much discussed this charmer, with 4br/3ba, 3250 sq. ft. They've just cut $180k/-7% after about 4 months on market. That leaves this one at $2.399m, still up there, but less obviously out of whack with the few listings priced in the same range.
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