Tree Section Closings

Posted by Dave Fratello on Wednesday, June 24th, 2009 at 10:08pm.

We see a couple of recent closings that help fill out a picture of Tree Section activity...

958 Rosecrans (2br/1ba, 975 sq. ft.) on a 6000 sq. ft. lot, was one of "Two New REOs" we mentioned in early May. It has now closed for $650k, a token $100.00 over the list price.

The same property sold for:
  • $422k in Jan. 2001
  • $580k in March 2003 (+37% over 2001)
  • $977k in July 2006 (+68% over 2003, +132% over 2001)
There was something wrong with that 2006 sale – few payments, if any, were made. The bank took it back in May 2007, and only this year sought to unload it.

Admittedly, this sale doesn't tell us much about the market, because it's such an outlier. The other home mentioned in "Two New REOs," 543 24th, hasn't closed yet.

We also just saw the sale close on 2300 Laurel, a 4800 sq. ft. corner lot.

That listing began at $1.399m, despite the clear evidence that this was an overreach. A better-located lot-and-a-quarter (6000 sq. ft.) at 1900 Laurel had closed for $1.25m in January. (See "Dirt Cheaper?" for more on that one and other lot sales.)

2300 Laurel closed Wednesday for $1.160m, about $120k below the last list price, and $90k below the bigger lot at 1900.

Also, we've been meaning to offer some news on 2 other lower-priced Tree Section homes, 2111 Valley and 2500 Oak (3br/2ba, 1350 sq. ft.). (2500 Oak pictured.)

Valley seemed to be a very cheap lot sale when listed for $638k in late February; we have once previously noted that it closed for $725k in mid-April. But here's where we got an assumption wrong: The home (3br/1ba, 925 sq. ft.) is not being scraped, but redone.

That makes Valley part of a growing (and welcome) trend – homes that would have been teardowns not so long ago are being spiffed up to be lived in instead.

Much the same for 2500 Oak, which closed for $738k in late February. (See "New Lows Achieved in Trees.") As anyone who passes the corner of Marine and Sepulveda can plainly see, the home is getting new life with a remodel.
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