Fallingprice

Posted by Dave Fratello on Thursday, November 15th, 2007 at 6:20am.

The new Hill Section home at 911 Duncan was pitched for some time as "reminiscent" of Frank Lloyd Wright's "Fallingwater." But it's noteworthy now for its falling price.

This slick, modern home, with 5br/6ba and 3700 sq. ft., was first offered June 1 at $3.770m. Last month it slipped to $3.650m. This week, along with a bogus re-list and a fresh DOM clock, Duncan dropped to $3.299m, down $470k (-12%) from its start. (True DOM: 165.)

The $470k worth of cuts to date at 911 Duncan are the largest, dollarwise, that we've seen for new construction in the Hills since Spring. The three biggest cuts on closed sales:
  • 114 N Ardmore – 5br/5ba, 4750 sq. ft., cut $195k from its start; closed in June at $3.2m
  • 1043 10th – 5br/4ba, 3950 sq. ft., cut $297k from start; closed in July at $1.95m
  • 300 N Dianthus – 6br/6ba, 5500 sq. ft., cut $320k from start; closed in August for $4.175m (MBC once labeled this one "The Fishbowl")
Percentagewise, 1043 10th suffered the largest cut among new construction (13%) – no big surprise given its location next door to the loading docks of the main post office on Sepulveda. (See "Figuring out a location discount.")

Given this data, it appears that, by the time it sells, 911 Duncan is going to fare the worst among new homes listed in the Hills this year.

The builder may well have room to maneuver and still profit. The lot was purchased for $950k in August 2005. That means the current price is +$2.3m, which ought to cover expenses to date.

However, this is very much a custom design – a bit strange for the open market – and it was surely more costly than the average speckie.

Main oddity: the main living and dining areas – including the kitchen – share the top floor with... the master bedroom. That's a little crazy, but it was the best way to treat visitors and masters alike to the best ocean views.

There's no yard except the grassy driveway, and we're a bit suspicious of the livability of some of the bedrooms on the basement level, but, overall, 911 Duncan is a beauty. (We've previously said "cutie," and we're sticking to that, too.)

This home should be perfect for someone. And that someone is likely to feel that they're stealing it at $3 million or so.
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