More Blown Price Points

Posted by Dave Fratello on Friday, March 7th, 2008 at 6:28am.

A couple of months ago, we featured a two new homes that had slipped from one symbolic price tier down a rung, from $3m+ to under $3m, and from $2m+ to under $2m. (See "Blowing Their Price Points.")

742 33rd had opened at $3.295m, but slipped below $3m to $2.995m, where it remains today.

1901 Poinsettia had started at $2.499m, but was then newly priced at $1.999m. MBC speculated that it would become the first new home in the Tree Section to sell for less than $2m in quite a while. (Poinsettia is pending, but 3104 Pacific has closed for $1.950m, giving that one the dubious distinction of being first to come in under $2m.)

There are some new examples. Recently, 2100 Flournoy dipped from its pre-completion price of $3.200m to a rumored sale price of $2.750m.

But no active listing has tumbled quite like 570 27th. This new home (which Blake Roberts calls "The Farmhouse" – and he loves it) hit the market March 14, 2007, at $3.899m. Wishful thinking. When it was down to $3.299m, MBC took note (see "The High End Gets Lower.")

And now The Farmhouse, formerly a ceiling-pusher looking for almost $4m, is finally priced below $3m (actually one dollar below $3m). Time will do that to you – the listing is one year old next Friday.

Is it a "deal" now, as Blake proclaims? Hard to say. We know from previous stories that people have mixed reactions to the home. Even booster Blake calls it a "square-peg house in a round-hole neighborhood." That's to say: it's different, and off-putting to some.

The home is one of 6 in the Trees with 4000+ square feet; the new price brings it to $731/PSF, somewhat more in line with recent sales.

Blake intimates that the home could be unprofitable to the developer at a price in this range, but that's an open question. The lot went for $1.3m, so there would seem to be some room for profit – just $900k less than that initial dream price. So much for that reach for $4m.
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