First Mistake on a Speedy Speckie

Posted by Dave Fratello on Tuesday, May 31st, 2011 at 1:09pm.

Welcome back, and here's hoping you had a great holiday weekend. Thanks for permitting MBC a little (unannounced) break.

We did have a new South Bay Confidential column this past weekend, looking at the biggest price chops we've seen this year in the broader region. Hint: The bigger they start, the harder they fall.

As to weekend opens, this weekend, it looked like a virtual boycott of Memorial Day. We saw only one new offering [226 42nd, (3br/2ba, 1600 sq. ft.), $1.088m, pictured] in the Sand, and El Norte at that.

Alas, we didn't visit or review, but we're open to feedback from any who did.

So with the past behind us, let's turn to the news.

And once again, somehow, it seems to involve the Speedy Speckies.

Turns out, the launch price of the flagship of the bucket of 5 new homes, 2516 Pine – the only one that's on the MLS – has been reduced 9% in less than 2 weeks on market. Quite quickly, it's at $1.999m.

Are we supposed to have forgotten that 2516 Pine launched at $2.199m on May 16?

Are we supposed to forget the published record? (See "$2.2m for First Speedy Speckie.")

Are we supposed to trust the MLS to track this properly?

The listing agent did seem to pull what we used to call a "bogus re-list" on the property. At the beginning, the property had the MLS #S11062077.

Eleven days later, with the price cut, the property acquired its new MLS #S11067622.

The user-friendly Redfin site counts days on market for 2516 Pine as 4 as we write, meaning they've been fooled.

The MLS shows a full 15 CDOM, meaning "combined days on market," a count which tolls for the property regardless of re-lists. But average consumers – even devotees of Redfin – get the whitewashed record.

OK, so they made a mistake with the start price. Who's not human?

And that $2.0m-range re-start price is still worth watching. There's a lot of potential profit planned into these quick builds on $800k lots. Just a little less, now, than before.
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