Hill Closings – And Issues

By Dave Fratello | May 10th, 2010
A couple of new closed sales in the Hill Section raise interesting issues...

1009 8th is a newer (2004), fairly large (5br/5ba, 4500 sq. ft.) Spanish with a terrific, open feel.

Big kitchen, great room and sizable yard made possible by a 7200 sq. ft. lot. Hey, that's almost an East Manhattan lot.

The closed price came in at $2.040m.

Now work backwards. That's $150k (-7%) off the last list price ($2.189m) and $260k (-11%) off the start price of $2.3m.

Not bad deal-making by the buyers who walked in just a month or so into the listing.

Now go further back. The same home was purchased new in Nov. 2004 for $2.280m.

That puts the Spring 2010 value down 11% from late 2004.

MBC established in October 2009 that MB was living in 2004 prices (see "How Resales of '03-'06 Purchases Are Faring" for our opus on the subject). But this year you hear talk of prices "firming" and – perhaps – rising in certain segments.

That's not what just happened on 8th. Hypothetically speaking, it just sold for a 2003-ish price.

A very similar listing, by profile as well as style, is due to be affected by the 8th St. sale.

952 11th (5br/4ba, 5050 sq. ft.) is also a Spanish built in 2004. As you see, it's a bit bigger (~500 sq. ft.) and the lot's 7500 instead of 7200.

Arguably, the build is richer and the feel more luxurious than 8th, but the location – fairly near both MBB and Sepulveda – has held buyers back for 4 months so far this year.

Location and price, actually, both have been factors.

952 11th was bought new in May 2004 for $2.150m. It was offered last year for $2.7m and has lingered at $2.495m (+$345k/+16%) this year.

With the 11% chop off 2004 at 8th, and the hope for a 16% markup at 11th, we have a 27% disagreement in possible values of these 2 similar properties. Will the sellers of 11th let the market speak?

One other closing of interest – the corner lot at 8th/Poinsettia (800 Poinsettia) has just come in a trifle below $1.6m ($1.579m).

The lot has big city/mountain views to the north and east (see pic from the listing), and the 7200 sq. ft. footprint is about 10% bigger than some nearby.

The home is strange, though "habitable," as the listing gently suggested.

Look across 8th to 718 Poinsettia to find a huge (6br/5ba, 5725 sq. ft.) new home that just sold for $3.225m in December. The dirt there (6500 sq. ft.) had sold to a developer in Sept. 2005 for $1.850m.

That land deal might suggest a 2005 value for 800 Poinsettia of around $2.0m or more, given that views are a big draw for most homes on this north-side stretch of 8th.

After a brief dalliance with a FSBO sale late in 2009, the listing for 800 Poinsettia began this year at $1.9m, closing 17% below that figure.

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