It was nearly 4 and a half years ago, in MBC's 9th post, that we posed this question: "What's Up with 864 12th Ct.?
We called the little home a "frequent flier on the MLS," noting these bubble-era trades of the home:
- Aug. 2002: $850k
- Aug. 2004: $1.150m
- Aug. 2005: $1.469m
Ever-increasing prices, and always with sales in August.
In March 2007, the owners were trying for another little markup to $1.549m
– more than $1,000/PSF
for a Tree Section house backing up against a commercial parking lot. Wow.
But when we were asking "what's up with that?" in 2007, we had the sense that the sale wouldn't happen, and it didn't. The listing quit, and we didn't hear more about 864 12th Ct.
(4br/2ba, 1500 aq. ft.) again.
Until recently, that is. An off-market purchase of this little cottage has just posted.
The newest trade: $1.135m
That's a complete rewind to 2004 pricing, not to mention a paper loss of $334k (-23%)
in market value from the 2005 acquisition.
We looked for evidence that the 2005 price maybe reflected some remodeling between '04 and '05. That doesn't seem to be the case. The '04 listing includes references to the remodeled kitchen, stainless appliances, new crown molding, etc. And the home sold then for $1.150m.
We've got no gripe with a 1.1-ish price now for a smallish home near schools, parks and downtown. From here it looks like a good deal for both sides, whereas the '05 price just looks preposterous. That time, 12th St. sold off-market. (Beware those off-market "deals!")
The phantom equity is gone, washed away like so much of the froth of the bubble era, while patterns have returned to normal at 12th Ct.: It sold in August, again.