There are currently 11 blog entries related to this category.
Thursday, November 7th, 2013 at 7:55am. 309 Views, 0 Comments.
This year is full of stories of short-term holds resold for a profit. It's a classic rising-market (bubble?) phenomenon.
One of the boldest is the newest listing to hit the market, 88 Manhattan Ave.
This is a 3br/4ba, 2150 sq. ft. detached TH with a mid-90s build date and much more recent updates that gave it a modern feel.
This one traded back in May 2012 for $1.925M, and is back now offered to the public at $2.650M. That's a markup of $725K and 38% over the acquisition price about 18 months ago.
Interestingly, the same property was offered three times during the slow years of 2009-2011 at prices ranging from $1.899M down to $1.799M. It never could sell. The 2012 sale was arranged off-market.
What matters, of course, is not the history, but the…
Wednesday, October 30th, 2013 at 7:59pm. 408 Views, 0 Comments.
We're starting to see quite a few homes bought and put up for resale within the year. It may not always be profiteering or a fix-and-flip situation, but quick resales are benefiting from the quick uptick in prices in MB.
Ordinarily, if you were to buy a property to remodel and resell, you'd need to get it close to, or under, market price, do the work and resell at such a price as to mark a solid profit. Indeed, some say the profit is all made in the acquisition price.
Then there's 309 18th St.
Not so long ago, this Spring, 309 18th drew multiple bidders, finding one who just cleared the field with a monster offer.
To wipe out the competition, the buyers paid $2.459M in March, against an asking price of $2.099M. That was an overbid of $360K (+17%).
Monday, September 16th, 2013 at 12:45pm. 320 Views, 0 Comments.
We have to go back to May 2010 for the story of a failed listing where everything kinda worked out.
They were selling 219 N. Dianthus (4br/4ba, 3300 sq. ft.) at that time, hoping to get $2.089M, just a little over the late-2006 acquisition price of $2.000M.
The big, big, big views were the chief asset. The extra square footage for this tall and skinny home was another plus.
But the listing did not pan out, and it quit, quietly, in late 2010.
Come Summer 2011, luck was in the air. An off-market offer came through, and 219 Dianthus sold for $1.750M.
That was $200K lower than the last asking price from 2010, and $250K lower than acquisition, but in 2010-2011, you took what you could get and moved on. The market then felt mostly flat, and memories of the…
Wednesday, August 28th, 2013 at 8:58am. 429 Views, 0 Comments.
It's a theme you've heard here before: What couldn't sell before, now does.
A couple of recent examples are real eye-openers.
432 23rd Place (3br/4ba, 2250 sq. ft.) is a late-90s townhome on an alley.
This one has had a very difficult time on the market, trying, but failing, to sell in each of the past 4 years, 2009-2012.
But you know how it worked out this time.
The last list price in 2012 was $1.149M. It canceled nearly a year ago in early September at that number.
This year, the home presented differently. In past years, it had been occupied, felt very dated and had a closed-in, walled-off kitchen. That sort of isolation of the kitchen was "out" when the TH was built – a mistake. But this year, they opened up the kitchen to the living area and…
Saturday, August 24th, 2013 at 8:06am. 408 Views, 0 Comments.
Want to make $1M on a quick deal?
Unless there's some catch.
Worry not. Your eternal soul is safe. All you need to do is buy a Manhattan Beach short sale and hang on for a short time, while the market rockets skyward.
And that's roughly the plan at 316 45th.
This ocean-view TH in furthest-north El Porto was picked up a relative moment ago, in Nov. 2012, for $1.537M.
Notice the 1.5 in front.
How about $2.635M?
That's the current request. 2.6+. A bump of $1.1M.
This is a 3br/4ba TH with 2100+ sq. ft. inside, and lots of parking. (Necessary with this being El Porto.)
The views are freaking for real. As we said in a review in Sept. 2012:
There are few higher points in MB with more unobstructed panoramas than this TH on the
Monday, May 13th, 2013 at 11:59am. 495 Views, 0 Comments.
They've just closed an above-asking deal at 2417 Crest (3br/4ba, 2300 sq. ft.), a rear-unit TH with great ocean views.
This is a bigger-than-standard TH at 2300 sq. ft., and they sought a bigger-than-standard $1,090/PSF when they first put a sticker on the home.
But those views, and the distinctive stlying, brought many suitors. And when that happens, prices jump.
In this case, from $2.499M to $2.575M, with an enhanced PPSF of $1,123/PSF.
This home, a 2002 build, got a thorough re-do with panache in 2009, and it's got several signature elements that stick with you.
Two unique features jump out: The long (14' long) built-in, modern dining table stretching from the kitchen – a bold statement that defines the home as an entertaining space.
Friday, April 26th, 2013 at 6:56pm. 483 Views, 0 Comments.
Plans change. You buy a house, something changes, you gotta get out again.
This is a scenario that could have cost sellers a lot of money over the past few years.
Indeed, we remember a Hill Section example of this that was brutal. In June 2010, someone said "must have" to a Craftsman at 861 10th St., paying $2.635M for the privilege.
Just 5 weeks after closing, it was right back up for sale – but the resale took forever (16 months) and lost a bundle when the price dropped well under $2.3M.
The final damage: -$366K (-14%). (For more, see "Hey, Didn't They Just Buy That? – Part 2," from Nov. 2011.) And that's just the market price; the sellers also had to pay roughly 5% costs of sale.
But more recently, we saw someone profit from a…
Thursday, April 4th, 2013 at 2:15pm. 855 Views, 0 Comments.
The last great housing bubble inflated in Manhattan Beach in the early part of the last decade.
Roughly speaking, things got interesting in 2002-03, eye-opening in 2004, head-smacking in 2005 and bonkers in 2006-07, before things got wobbly and we saw some deflation.
Now that the market is rebounding, and occasionally shocking observers, the question becomes: Can you now get a bubble-era price on resale in 2013?
There's more evidence emerging that the answer is "yes."
Here are some recent sales (including new escrows) on properties with a prior trade in an earlier 2000s bubble year.
721 36th (5br/5ba, 3450 sq. ft.) is a smartly built, spacious Cape Cod that was new just a few years back – perhaps defining the tail end of the last building boom.
Tuesday, March 12th, 2013 at 7:46am. 804 Views, 0 Comments.
Anecdotes don't make for good analysis, but...
Observation from a Northern California agent we spoke with Monday: "This isn't bubble pricing. It's worse than the bubble years. Our inventory is too low. Everything gets bid up crazily."
That's a different market the agent was speaking of, but it rhymes with what we see in MB these days.
So in this market, people can shoot for the moon, and sometimes hit it.
Look at one of the newest listings/pending deals in MB: 3312 Manhattan Ave., a detached townhome with 4br/3ba, 2000 sq. ft. (2000 build with views.)
This one tried to get $2.390M for a small stretch of Spring 2006, but didn't succeed.
Now, it's in escrow in an off-market deal that has posted at $2.399M (pending), suggesting that it may actually get…
Thursday, November 1st, 2012 at 8:27pm. 467 Views, 0 Comments.
1126 Laurel, the near-twin of a TH that was on the market earlier this year in this unique duplex just off of MBB.
You'll see 1126 Laurel up now at $1.399m, a price that would seem downright cheap in lots of places in the Sand Section for a 4br/3ba, 2300 sq. ft. newer TH. (This one's technically in the Tree Section, just north of MBB and near downtown.)
Heck, just go down the hill from this TH to the busy, busy corner of MBB and Ardmore, and you can find a smaller (1800 sq. ft.) 3br TH that just sold for much more: $1.485m (1118 N. Ardmore).
But price is relative in all kinds of ways – including relative to acquisition.
This TH at 1126 Laurel was picked up in the doldrums of July…