Rockets in the Trees

Posted by Dave Fratello on Tuesday, June 19th, 2012 at 3:56pm.

The new normal for the mid-tier of Tree Section listings is being redefined as we speak.

Roughly speaking, there's a $1.2m-$1.5m range where plenty of buyers are looking. Within that range, we've seen 3 recent listings come and draw multiple offers, which drives prices up.

3005 Palm (4br/3ba, 2075 sq. ft.) did not have a lot going for it. Location pretty far north of Valley is maybe a B-, the home is recognizably of a late-60s vintage, and a very recent flipper's remodel is uneven.

The re-do is snazzy in parts (high-end kitchen), but leaves several dated features intact – old rock details inside and out, a separate sauna building in the backyard, etc. That's how flippers do things. (Remember flippers?)

The home was easy to identify as a copy of 3601 Elm (5br/3ba, 2400 sq. ft.), both homes born around the same time, both sold recently. 3601 Elm had been added onto in back to sprout the extra bedroom, and had been updated lovingly and tastefully over the years – super sharp and appealing inside and out.

3601 Elm sold for $1.325m in April, then smaller, uneven 3005 Palm came along at $1.299m.

But 3005 Palm just closed for substantially more: $1.420m. Sure, the location is better than the 3600 block of Elm, but that price is still an eye-opener for what the home is – it shows momentum in the market.

1812 John (4br/2ba, 1750 sq. ft.) just got a mention here last week. It's a livable home in a prime location.

This one naturally invites comparisons to neighboring 1805 John, which had 20 offers and sold for $1.352m for dirt.

1812 is an imperfect house with a less-desirable lot than 1805 (see our review), but it had serious action when listing at $1.199m.

We're now picking up news that it will sell well into the $1.4s, about $100k over the neighbor.

754 26th (3br/2ba, 1775 sq. ft.) is, as we said this weekend, a cute 1960s cottage with some updates and good flow in a nice north-of-Valley location.

The sellers reviewed offers Monday, and, yes, there were multiples. Dave had clients in the mix and we'll need to be discreet with the details for now.

Suffice it to say that the $1.299m start price was objectively too low to begin with, based on recent sales, and that had the effect of bringing plenty of buyers to the table. You can guess what happened next. The sale here won't close till August, by design.

All of these sales are helping to establish a new sense of what "normal" pricing is for the Trees.
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