Tree Section Sales & Medians, Apr-Oct '07Posted on Thursday, December 13th, 2007 at 5:29am.
As our regular readers know, for several months, MBC has been publicly tracking market activity among SFRs west of Sepulveda. While there is a wealth of information in each of MBC's twice-monthly updates, these new sales reports feature different compilations and sorts of that data.
Readers also know it's MBC's convention to break up the large Tree Section into two market segments, one with homes priced below $2m, and one with those priced above $2m. We continue that practice in these reports.
You'll need to download a 6-page PDF, either by clicking here (Tree Section Sales) or by using a link in the upper-right corner of the front page under "MB Market Updates." The report has 2 separate 3-page sections – one for the <$2m segment, one for the $2m+ segment – looking at the same data on 54 closed sales that occurred in the April-October span of the report in 3 different ways:
- Sorted by Home Condition
- Sorted by Median Price
- Sorted by Median Price Per Square Foot (PPSF)
What do these various sorts show us?
First, the median price for Tree Section SFRs in this period was $1.42m for homes listed below $2m, and $2.5m for those above. (See pages 2 and 5.) If you're interested in a median for the whole Tree Section (all 54 sales), that's $1.775m.
There were 29 sales below $2m, and 25 above. And that last point is worth an extra comment. The number of homes sold in the higher-end market in the Trees was just a tick below the number sold in the <$2m segment. That's impressive. The reasons that the higher end feels slow to everyone include the greater inventory overhang and the fact that new construction has stalled so spectacularly.
Sale prices in the whole of the Trees ran from $925k to $4.2m.
The median price per square foot was $722 in the <$2m segment, and somewhat close at $746 PSF in the $2m+ segment. In our previous reports, we gave the Hill Section's median PPSF as $714 and the Sand Section's at a much bigger $941.
Finally, looking at new construction, all but one of the homes offered on the open market wound up selling for at least 92-94% of their initial asking prices. (The exception was 2104 Palm, which had to cut 18%.) Resales in that segment held up well, with 7 of 12 taking no cuts, and 3 with cuts of 13% or more. Resales in the <$2m segment hewed impressively close to list prices, with just 4 of 29 sales taking 10% or more off initial list. The bottom line: In Spring and Summer, resales in the Trees were hot. In both segments, well-priced homes did alright. When you look at the lingerers and quitters in the Trees, a noteworthy contrast is apparent – a poor start price is correlated with a failure to sell at all.
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