New and newer construction in the Hill Section keeps getting cheaper. Well, less pricey.
Witness the newly closed sale at 903 10th
, a new home as of about a year ago in which the builder has been living a while.
903 10th closed for $2.475m
on Friday, and for a big home (6br/7ba, 5120 sq. ft.) on a sunny southwest-facing corner lot, that's a remarkable $483/PSF
. That's well below the PPSF for the past 3 closed sales of new construction in the Hills (click any property address for more pics & details via Redfin)
Of these, smaller 1023 10th (pictured)
is just a couple blocks away from our subject property, edging close to the Post Office and Sepulveda. Same size lots (7500 sq. ft.). It's not a bad comparison, on balance.
That sale was in August, but now, 4 months later, someone has just paid essentially the same price (+$20k)
for almost 800 more square feet plus the corner lot. Not a friendly comp if you just unpacked in the new home.
Of course, 903 10th was not exactly new. And one somewhat older home (2003 build) did scrape out a new bottom by the PPSF measure earlier this year: 1042 2nd
(5br/4ba, 4425 sq. ft.), which closed for $1.810m
in August, a PPSF of $409/PSF
. (See "Atypical Deal on the Hill
One of the more noteworthy deals of the year in the Hills was right across the street from 903 10th, where 881 10th
(5br/5ba, 4000 sq. ft.) sold in September for $2.150m
. That was down $650k/-23%
from its April 2006 acquisition price of $2.8m.
That was a stunning drop in value for the 2005-built home, but 881 10th actually closed $55/PSF
higher than the newer, 25% larger home at 903 10th.
We can also just compare 903 10th to itself.
Back in August 2007, the lot was acquired for $1.725m
. (You can see the old listing here
via Redfin; you may have to "log in" to see it, though.)
The goal, then, was clearly NOT to build a 5000-plus-square-foot house and sell it for just $700k more, which is what has just happened. Why, that'd just $135/PSF to build. Uh-oh.
Those aren't the numbers you see for new construction around here.
Upon completion in 2008, the home was offered, informally, for $3.7m. Sky-high, sure, but that's some measure of what the builders thought it was worth. This year, the listing began at $3.195m
The final price was down $720k and 23% from there. Probably not the profitable project that penciled out in Summer 2007, but a late-season deal for the folks who relieved the builder of this burden.