Slip-Sliding on Oak

Posted by Dave Fratello on Saturday, May 26th, 2007 at 5:06pm.

Can a home lose $300,000 in value in little more than a year?

At 1313 Oak, the list price has been adjusted that sharply since the house first came up last year. Beginning April 11, 2006, these contemporary digs were offered at $2.799m.

Today: $2.490m, or $309k less.

The price was adjusted once last summer to $2.650m, but apparently that wasn't enough. With no takers, the home went off the market in December and only now has come back.

Reductions like this in asking prices tell us something, though there's no science to it. Chalk up this big drop to both an unrealistic seller and a softening market.

At Oak, you get 4br/4ba and 3550 sq. ft. for your $2.5m. In a twist, you get free furniture:
... being sold fully furnished (home has been designed w/custom furnishings totaling over $300,000 by participants from queer eye for the straight guy&re-design). No detail has been overlooked.
"Participants?" Like gaffers, or like the actual queer guys? Hmm.

There are about a dozen houses in the Trees with similar specs at prices within 5-10%, half of them new construction. But you have to bring your own furniture to those.

Location is iffy. It's a corner lot, but across from several businesses and their parking lots on the east (Sepulveda) side of Oak. And 13th St. right here is, unfortunately, a popular escape hatch for frustrated commuters on Sepulveda.

With so much supply at this price point, and so little activity, MBC will be pleasantly surprised for the sellers if they near that $2.5m. They paid $1.525m in Dec. '04 (was that before the Queer Eye furniture splurge?) so they ought to have room to move down, if need be.

Worth noting that when this one first went up last April, it was a case of the two-year itch too. Now it's a three-year itch.

Bad news: The often-optimistic Zillow thinks the value here is $2.066m.
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