MB Market Update for 5/15/10, Sand

Posted by Dave Fratello on Friday, May 21st, 2010 at 2:36pm.

As we take a look at the Sand Section's activity so far this month, a pretty big question arises:

Hey, Sand Section, what's up?

Buyers are raging in the Trees, the Hills are doing alright, but the Sand has recorded just 3 sales (new escrows) in a month, by our count. Two of those in early May.

It's not for lack of inventory – 34 offerings of SFRs alone in the Sand as of mid-May. (MBC doesn't track townhomes, but there are plenty that add to local inventory.)

Don't say this is some kind of backlash over the banning of beer at the 6-man. If anything, that should be raising interest in Sand Section property, no?

Summer's coming. Isn't it time to buy by the beach?

Just 2 buyers agreed in the first half of May:
  • 204 19th (4br/4ba, 4250 sq. ft.) is yet another listing to sell recently that had logged more than 600 DOM. This was the case for a few Tree Section listings to come off the board recently (see "Buyers Raid Trees").
As MBC noted in "Long in the Tooth," the last price cut on the home was last May – a year ago.

This is the big walkstreet home acquired by former Dodgers pitcher Derek Lowe for $5.0m in August 2006. After clearing out of town, he tried to sell – first for $5.7m, with gradual reductions to the last price, $4.599m.
  • 131 Kelp (2br/2ba, 1400 sq. ft.) is a little 1920s cottage with some improvements that's sandwiched between bigger homes in El Porto Norte. This was the second try in a couple years at selling the place, replete with offers of partial seller financing. One of the cheapest Sand offerings, last at $899k.
Meanwhile, a few new offerings came into the mix in the Sand (see the full list of Sand actives <$2m, and over $2m):
  • 3416 Alma (3br/3ba, 1850 sq. ft.) is a standard 60s home with updates. Sellers paid $1.3m in March 2005 and appear to have made a few tweaks since then. Starts now at $1.349m.
  • 464 36th (4br/4ba, 2125 sq. ft.) is a 50s home, remodeled nicely, with a little deck and yard. About 300 sq. ft. come from a guest house out back. Start price of $1.629m was adjusted quickly to $1.589m, but that still puts the home far above the PPSF for the larger, better-located home at 455 35th (4br/3ba, 3075 sq. ft.), now in escrow at $1.599m.
  • 301 35th (4br/5ba, 3100 sq. ft.) is an early 90s Mediterranean fronting Highland Ave. The home's big, with views, and steps to El Norte's restaurants, but the start price of $2.297m will raise eyebrows. The home was last purchased in the same month as 3416 Alma, mentioned above – March 2005, for $1.880m.
No screaming price reductions this period, but a couple merit mention:
  • 301 16th (6br/6ba, 6300 sq. ft.) is an early-90s modern on Highland (that's what 301 means – see the previous listing, too). 
The home's really a duplex, but is being listed as an SFR with a bonus rental attached. OK. With a switch in agents (which our spreadsheets record as a re-list), the price is down pretty steeply from $4.649m to $3.9m.
  • A little beach bungalow (2br/2ba, 900 sq. ft.) on one of the quietest streets up on the plateau, at 472 27th, has moved to the low 1.2s from the high 1.2s, now $1.220m.
Among closed sales, there were some interesting highlights (see all Sand closed sales):
  • 215 S. Valley closed for its newest asking price, $1.235m, closing the books on a listing MBC last featured in the aptly titled, "215 Valley's Back." The sellers had tried to get $1.650m in Summer 2008, but that was never going to happen.
  • Two homes closed in the mid-800s in the last couple days of April – a little bungalow at 3413 Bayview ($858k) and another, well, bungalow let's call it, at 532 5th Place ($835k). The latter of the two may have seemed like a deal in Jan. 2006 at $923k, but the owners had to pour in a lot of remodeling work to make it decent, but the timing of the resale did not reward them for it. 
  • 112 The Strand (3br/4ba, 4375 sq. ft.) made a nice play to holding up South End values, with the the updated, late-80s home netting $7.334m.
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