MB Market Update for 11/15/09, SandPosted on Wednesday, November 18th, 2009 at 5:01am.
Now let's look at what's going on by the beach.
Recall that there were 33 actives in the Sand Section as of 11/15/09. Here are links to the actives priced below $2m, and to actives above $2m.
New to the market were 3 listings, 2 priced below acquisition and one offered as a short sale:
- 528 24th is a taut, sharply remodeled little 2br/1ba, 1200 sq. ft. cottage in the gaslight area. Current owners paid $1.250m in Oct. 2006, now seek $1.150m;
- 123 44th is a 2007 acquisition that's short, though it's offered at precisely the Jan. 2007 price of $1.490m. Someone's going to need to break some bad news to the bank (see "Tinkering Won't Save It"); and
- 317 17th is another 2007 acquisition (Nov. '07), where the seller paid $2.050m, tried to unload for nearly $2.8m, and is now in escrow at $2.0m. (See "17th Gets Busy.") This one is a "new" listing only technically; it came up in escrow.
There's also one big closing story...
502 24th, the glorious, fun, cool new "green" modern across from the Grandview parking lot, the home that MBC called a "Beautiful Loser," has closed for $2.3m.
That's an astonishing $2.6m less than the start price, a 53% reduction from that nervy beginning.
This means that November has already seen the biggest percentage price chop from start (53%) on a closed sale in 2009 and the biggest dollar price cut from start – at 218 Anderson in the Hills, which went from about $10m to $6.525m (total drop $3.463m/-35%), as noted in "Ground Down to $6.5m."
The lot for the Beautiful Loser was acquired for $1.375m in 2005; a less spectacular speckie might have turned a profit near this price point. But recall that the listing said that this one was already priced $1m below costs when the list price was $2.995m – take another $700k off, and the bath taken here is $1.7m.
The closed price for 502 24th is precisely the same as that for another orphaned contemporary that sold well below its ambitious start price – 425 26th, just the other side of Grandview, on the hill overlooking the school (and with big views as a result); start price: $3.75m, sold short in July at $2.3m.
There were 3 new deals (new escrows) in this period in the Sand. These included the 17th St. house mentioned above, plus its neighbor, 321 17th, a lot-and-a-half last offered at $2.499m. We covered this ground in "17th Gets Busy."
We're almost afraid to mention the newest deal at 132 2nd, a star-crossed listing, it seems sometimes,
Added to the spreadsheet in this period is also 441 6th Place, though it was never on MBC's spreadsheets as an active SFR (it's a lot sale that launched in late September). This is a prime corner lot at the dead-end of Ingleside, right up on the flat 7th St. walkstreet.
Offering price was $1.649m, fully $401k below the lot price at directly comparable 440 6th on the next block, purchased for $2.050m in Sept. 2007 before the current, new Cape Cod there was built. (Offered currently at $3.999m.) We'll see where 6th Place ends up; it's the better lot (splitting hairs!) but it's now 2 tough years later.
Among the active listings wishing for some actual action, there wasn't a lot of movement:
- The cheapest listing in the Sand, 532 5th Place, is gone. MBC called it "a dinky, 1930s-vintage house" (2br/2ba, 900 sq. ft.) and noted that it was on an alley. Sellers had paid $923k in Jan. 2006 before a significant remodel; last at $899k.
- The strange case of 217 Seaview continues. This was the "lease-option" house a couple years back, offered this year with urgent language pleading for bids, now offering "owner financing" and a tiny markup of $12.5k over the start price from July to $1.325m.
- Higher up the scale, 121 17th (pictured) made its first cut, dropping $300k to $3.7m. We have the sense that there's much further to go. As MBC noted in a "Weekend Opens" story featuring this listing:
The one 100-block sale we see in the last 6 months was substantially larger 132 19th (3br/3ba, 3300 sq. ft.) which sold in May for $3.315m and $1,005/PSF. (See "Some Sand Sales" for more.)
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