The MB median price is down over last year – down even from the bottom year, 2009, west of the highway. So how would you do now if you tried to resell a 2007 purchase?
Lots of peak-year resales have trouble recouping their original sales prices.
To cite just one example we've recently cited here, the newer,…
The MB median price is down over last year –
down even from the bottom year, 2009, west of the highway. So how would you do now if you tried to resell a 2007 purchase?
Lots of peak-year resales have trouble recouping their original sales prices.
To cite just one example we've recently cited here, the newer, ocean-view TH at
2211 Bayview fetched
13% less than its 2007 acquisition price in a
recent open-market sale.
No big surprise there – the years 2006-07 largely mark the peak of local RE. You expect some dropoff.
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| 605 33rd just sold for $2.475m off market. |
But as we see in the case of
605 33rd (5br/5ba, 3750 sq. ft.), an off-market sale might be the way to pull off a
minor miracle – reselling for a 2007 price.
Late last week, 605 33rd posted a sale at
$2.475m, just $40k below the March 2007 sale at $2.515m.
Total decline from peak:
1.6%. That's one-point-six, not sixteen.
It's quite a feat.
It's also the priciest sale among comparably sized homes in the Tree Section this year.
Here are this year's 10 other Tree Section sales over $2m for homes of similar or smaller interior size on single lots (sorted by priciest first):
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| 616 17th is one of the priciest resales in the Trees in 2011. |
616 17th (5br/4ba, 3650 sq. ft.) at
$2.425m.
632 29th (5br/6ba, 3350 sq. ft.) at
$2.312m. (Sold off-market.)
742 33rd (5br/5ba, 3975 sq. ft.) at
$2.275m.
1816 Palm (5br/4ba, 3800 sq. ft.) at
$2.181m.
709 25th (5br/5ba, 3800 sq. ft.) at
$2.175m.
569 35th (4br/6ba, 3700 sq. ft.) at
$2.175m.
660 29th (5br/4ba, 3450 sq. ft.) at
$2.150m.
 |
| 2604 Pine sold off-market for $2.135m - down 16% from Fall '06. |
2604 Pine (5br/4ba, 3400 sq. ft.) at
$2.135m. (Sold off-market after a run on the public market.)
2100 Pine (5br/5ba, 3100 sq. ft.) at
$2.030m.
3005 Poinsettia (5br/4ba, 3250 sq. ft.) at
$2.025m. (See "
Prime Spot, 20% Hit.")
Interesting list there, including a few with significant losses against 2006-08 purchases.
The home with top billing above,
616 17th at $2.425m, was a lovely custom chateau on a bigger lot (6125 sq. ft. vs. 5400 for 33rd) in a transcendent location – 17th St. on the Martyrs hill.
Somehow, 605 33rd outsold that home, lot and location by $50k.
 |
| 742 33rd lost 16% since 2007. |
|
Third on the list is something of a neighbor – a few blocks east on 33rd is
742 33rd, also a newer build (2007) that resold recently. The $2.275m sale price translates to a PPSF of $573/PSF. (The home is slightly larger than 605.)
By that PPSF yardstick, 605 33rd has just sold for
15% more by the square foot.
Also worth noting about 742 33rd – those sellers didn't escape the effects of a popped bubble. (See "
How Two '08 Purchases Fared at Resale.")
They paid $2.7m for the home new in June 2008 (discounted from
a start at $3.3m!), but resold this year for $425k less – a drop of 16%.
That's more like the scale of the drop that you'd expect from peak till now.
|
| 2604 Pine lost 16% since 2007. |
In fact, also on this list is another off-market sale that posted just last week,
2604 Pine, a custom home that had been acquired in Fall 2006 for $2.550m and resold for exactly 16% less, $2.135m.
Yes, that sale at 605 33rd was quite a feat.
We're still looking for others in the Trees that resold flat to a peak year. (Cue the crickets.)
Had 33rd gone for 84% of its 2007 price, that would have been $2.112m, or $363k less. (Not that the owners would have been sellers near that price.)
To be fair, that 2007 sale at 605 33rd was down from the asking price. A full year earlier, in March 2006, the listing for the (then) brand-new home kicked up at $2.750m. That may have seemed almost reasonable at the time – in those unreasonable times. So the ultimate acquisition price for the new home was
down $275k (-10%) off the ambitious start from a full year earlier.
Moreover, the outgoing owners did put some time and money into some upgrades – flooring, outfitting the garage, adding a security system.
But it was still $2.5m in 2007, and as we've demonstrated here, no one has come close to 605 33rd yet in 2011 for a Tree Section resale of comparable size.
Please see our blog disclaimer.
Listings presented above are supplied via the MLS and are brokered by a variety of agents and firms, not Dave Fratello or Edge Real Estate Agency, unless so stated with the listing. Images and links to properties above lead to a full MLS display of information, including home details, lot size, all photos, and listing broker and agent information and contact information.
