We had two sales close in the last few days in the glutted Tree Section $2m+ segment. Buyers got 14% discounts off the original list prices of both homes.
- 2310 Palm (5br/3ba, 3150 sq.ft., new) went into escrow shortly after being featured by MBC (see: "The 1-Year Club in the Trees") in late October. But it's not…
We had two sales close in the last few days in the glutted Tree Section $2m+ segment. Buyers got
14% discounts off the original list prices of both homes.
- 2310 Palm (5br/3ba, 3150 sq.ft., new) went into escrow shortly after being featured by MBC (see: "The 1-Year Club in the Trees") in late October. But it's not like the home hadn't had exposure before – it was on public offer for 438 days, starting at $2.699m, closing at $2.325m (-$374k/-14%). Last list was $2.399m.
- 3011 Elm (5br/5ba, 3600 sq. ft., newer) got $2.65m, which is plenty, but here's the thing. It was purchased 2 1/2 years ago – by a pro athlete who has now moved within the Tree Section – for $2.8m. On the face here, the home declined in value by 5% over 30 months. It also dropped 14% (-$445k) from the hopeful price of $3.095m slapped on the listing in early May of this year.
Percentagewise, those sale prices were the second- and third-greatest reductions recorded by MBC in 2007 among Tree Section sales above $2m. The biggest cut was 18% at
2104 Palm, which shot for
$3.675m in January and got
$3.025m in September.
As to 3011 Elm
(pictured), an interesting question arose in comments here at MBC. When it was first sold in July '05 for $2.8m, the home was actually listed for
$2.595m. There was a bidding war that resulted in the $2.8m price. So, if it has now re-sold
for slightly more, at
$2.650m, did it really decline in value over these 2+ years?
Obviously the value of 3011 Elm
to a willing buyer did change by 5%. Also, time on market stretched out a bit here – almost 200 DOM this round for the same house that had a war last time.
What's most fascinating is that in the Summer of '05, the list price suggested that the market value was
under-estimated by 7%, while in the Spring of '07, the value was
over-estimated by 14%.
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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.
Based on information from California Regional Multiple Listing Service, Inc. as of March 19th, 2024 at 6:20am PDT. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.