MB Market Update for 9/15/08Posted on Thursday, September 25th, 2008 at 3:34am.
Inventory of SFRs west of Sepulveda stood at 110 on Sept. 15, inching back near 116, the highest figure MBC has recorded in 18 months of public market tracking.
In the first half of the month, we saw 16 new listings, 10 sales (new escrows) and 3 cancellations. (We are actually aware that 2 of the 3 cancellations came back as re-lists after Sept. 15, but the spreadsheets show them dropping out of action.)
The most noteworthy trend in this update was probably the re-pricing of several listings in the Tree Section in the $2m+ segment. Several listings that started in the mid-to-high $2m range are now pushing down toward $2m even.
That can be good strategy. Once it became the lowest-priced of the $2m+ listings, at $2.199m, the new modern at 560 36th made at deal, down at least $800k from start. (See “Not Holding Out.”)
Leapfrogging down afterward: 3404 Pine (start: $2.45m, now: $2.175m) and 757 30th (start: $2.699m, now: $2.199m). Several others are now clustering near $2.3m, from start prices around $2.5m.
We now have another Hill Section listing that has dropped more than $1m – 218 N. Dianthus is now at $5.695m after a start in March at $6.750m (now down $1.055m/-16%).
Among closed sales, the biggest cut percentagewise in this period was 25% on 794 27th (see “Close the Books on 794 27th”). With a closed sale price of $1.950m, the seller actually went $550k below the May 2006 acquisition price – a symptom, in part, of overpayment back then, and of course a slower market now.
Three Sand Section listings closed, all double-digits below their start prices – 125 31st came in at $3.150m (-$399k/-11%), 224 23rd Pl. came in at $1.525m (-$274k/-15%) after just about 2 months on the market, and the nice remodel offering only 2br to go with 2650 sq. ft. up at 448 27th closed at $1.725m (-$364k/-17%).
On a brighter note, two lower-priced Tree Section listings came in closer to their starts – 1412 Elm closed for $1.250m (-$135k/-10%) and 3513 Oak, near Rosecrans and Barnabey's – no, wait, Belamar! – took $990k, down just $9k/-1% from asking.
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