A sales drought in the Tree Section $2m+ segment has now ended after 25 days.
MBC's records show that the last sale was 3005 Poinsettia
, posted on June 29 and discussed here
Today comes the news that the new construction at 3113 Valley
This home is 5br/4ba, 3400 sq. ft., on a slightly larger-than-usual lot (5000 sq. ft.). Last price was $2.299m – or $674/sq. ft., the lowest among Tree Section new construction.Bonus feature:
Solar electric generating system pre-installed. Nice.
But 3113 Valley has been immediately replaced by a new home at 3104 Pacific
(pictured), which begins at $2.149m, $150k below
the other new construction in the Trees.
That probably seems like aggressive pricing for a newbie that, by profile, is a lot like the others that are close in price (5br/4ba, 3200 sq. ft.).
But 3104 Pacific also must consider two new homes on Pacific sold within the last year that sat around awhile and took real reductions.
- 2512 Pacific (5br/4ba, 3600 sq. ft.) began in March 2006 at $2.350m. It stuck around and the listing language got more pleading – "Waiting For The Bubble? Seller Will Negotiate Now!!!" County records show it sold for $2m (plus $4k) in Nov. '06, down $345k (-15%).
- 3405 Pacific (4br/4ba, 3200 sq.ft.) also began in March 2006, at $2.149m. It sold one year later for $1.775m, down $375k (-17%).
With neighboring new construction selling for $1.775m and $2.0m, all of a sudden, the price on 3104 Pacific looks quite high.
The home at 2512 was bigger, but went for $150k less than the start price here. All things being equal, at the same square footage price ($556), 3104 should sell for $1.780m – about the same as 3405 Pacific.
Of course, those sales closed long ago. We need not consider them now. It's a different market already.