Reaching for 30%

Posted by Dave Fratello on Monday, February 4th, 2013 at 7:17pm.

In speaking with prospective sellers directly, as we do from time to time, it's not unusual to hear the opinion that the market is up 15% or more since... not very long ago at all. Pick your reference point.

Median prices haven't moved like that, but medians don't capture a lot. They speak to the city as a whole, not individual properties.

Our most recent data show that SFRs west of Sepulveda jumped only 1.5% – that's one-point-five percent, not fifteen – last year, based on median price.

Now there's a new listing out that reflects someone's sense that the market's up nearly 30% since... not very long ago at all – Dec. 2011, in this case.

3521 Walnut
Just 13 1/2 months ago, 3521 Walnut (5br/4ba, 3250 sq. ft.) sold for $1.435M.

It's a nice custom Craftsman (another Craftsman?!) that ran for 5+ months on market from June 2011-Nov. 2011 before posting a deal. We reviewed it nicely in this June 2011 post.

At the 3-month point on market, MBC said of 3521 Walnut:

This may be the signature example of an almost-unforgettable home that seems utterly forgotten in the Tree Section mix. 
Back then, it was one of a few listings north of Valley that were lingering for a few to several months. (Lingering is something houses used to do in the markets of the past. The concept recently has been redefined as hitting 30 DOM.)

Bullishly, it would seem, the new listing for 3521 Walnut starts now at $1.850M. Much as it began in June 2011 at $1.899M.

And yet, why not?

It's one of a total of 5 active listings in the Tree Section, and one of 4 of those 5 with a significant location issue. (Refinery proximity and views, in this case.)

Low inventory, lovely home, maybe you reach a little bit and just wait to see what happens. Reaching for 30% more than Dec. 2011... we'll see how that plays out.

Worth noting: The next-door neighbor, a slightly newer and larger Mediterranean at 3525 Walnut (4br/4ba, 3500 sq. ft.), ran a long time on market alongside 3521 Walnut back in 2011, and eventually sold for $1.340M. Both sales sure look like steals in the rear-view mirror.
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