Poor Homer

Posted by Dave Fratello on Thursday, July 17th, 2008 at 6:00am.

For months, the market rejected 225 Homer.

It's a decent-sized 3br/3ba, 2300 sq. ft. home with substantial ocean views. Contemporary, clean, and nice, nestled in a very quiet part of the South End, it was Mrs. MBC's pick in early April.

225 Homer began March 21 at $2.3m.

That didn't seem crazy because a nearby neighbor, 207 Homer, was up for $1.779m at the time, and that one was older, smaller (1800 sq. ft.), crustier and at greater risk of losing those ocean views if a neighbor someday builds up. The combination of factors suggested a premium of $500k.

207 Homer sold pretty quickly for $1.715m, an impressive $953/PSF. (It closed May 2.)

But 225 Homer lingered. This week, after several previous cuts (see listing price history via Redfin), 225 Homer dropped to $1.850m (-$450k/-20%), which is a fairly low $808/PSF for a nicer, newer home.

But the world hasn't gone crazy. Finally, that price seemed a bargain, and 225 Homer is now in escrow. (We don't have the sale price yet.)

225 Homer has some flaws – a too-small master, awkward spaces upstairs. Still, if you had proposed, at any time recently, that it was worth only about $100k more than smaller, crustier, much more flawed 207 Homer, you would have earned the laughter directed your way. The sellers have rejected offers with a 1.7 at the start.

Now, don't cry for the sellers. They've moved uptown to a huge, brand-new home even closer to the water. So they'll do fine.

But the dropoff at 225 Homer offers a hint that the market has slipped in just the last few months. You can't generalize from one house, but you can call it a tea leaf.
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