Such a Deal in '09

Posted by Dave Fratello on Thursday, November 1st, 2012 at 8:27pm.

A new listing out this week tells you that 2009 was a great time to buy.

That's 1126 Laurel, the near-twin of a TH that was on the market earlier this year in this unique duplex just off of MBB.

You'll see 1126 Laurel up now at $1.399m, a price that would seem downright cheap in lots of places in the Sand Section for a 4br/3ba, 2300 sq. ft. newer TH. (This one's technically in the Tree Section, just north of MBB and near downtown.)

Heck, just go down the hill from this TH to the busy, busy corner of MBB and Ardmore, and you can find a smaller (1800 sq. ft.) 3br TH that just sold for much more: $1.485m (1118 N. Ardmore).

But price is relative in all kinds of ways – including relative to acquisition.

This TH at 1126 Laurel was picked up in the doldrums of July 2009 for $1.037m.

The developer of this then-new duplex had tried to get $1.289m for the newly completed TH, but it was perilous 2009 then, so the developer moved quickly into fire-sale mode and dropped 20% off asking to get a deal done with just about 3 months of market exposure.

Here we are in 2012, and the property's coming out $110k higher than the developer's 2009 dream, and – are you ready for this? – 35% above acquisition.

Has our market turned up 35% in 3 years?

No, but buy low, and maybe you can sell high.

When we were living out 2009, the year the MB market truly bottomed, the only folks buying seemed to be the contrarians. And plenty of contrarians didn't have their money anymore, or couldn't get financing, but some folks scraped it together and bought because they wanted or needed to while no one else could or would.

Don't they look smart now?

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We referenced another TH from this 2-unit complex that was on the market earlier this year. That was slightly bigger 1130 Laurel (3br/3ba, 2875 sq. ft.). That listing posted twice that they had a deal, but then the sellers changed their minds and withdrew the property.

Some of what we said of 1130 in our review this past May would probably apply to 1126:

a very spacious, sensible and modern home (TH) spread out mostly flat in an SFR-type layout. It's newer (2009), private, quiet and close to everything. 
Like 1126, 1130 Laurel was asking more than the 2009 acquisition price.

1130 in 2009: sold for $1.225m

1130 in 2012: asked $1.490m (+22%)

They had 2 deals without making cuts, but nothing transacted so we don't exactly have a perfect 2009-to-2012 comparison to offer.
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