Day after day this week, new listings have hit the market starting out below their acquisition prices.
We list them here in order of the reduction from acquisition price, lowest to highest:
- 3505 Pacific, a delightful family home (4br/3ba, 2850 sq. ft.) on a nearly double-wide lot with a big location challenge, was purchased for $1.350m in Jan. 2004, but starts now at $1.299m (-$51k).
- 1604 Poinsettia (5br/4ba, 3125 sq. ft., 2004 build) was last purchased in Dec. 2005 for $2.2m, and began this week at $2.099m (-$101k).
- 528 6th (2005 build) is a sharp, angular modern that made a few appearances on MBC in 2008. Last purchased 3 years ago in Feb. 2006 for $2.995m, now offered for $2.799m (-$196k).
- 429 31st (4br/4ba, 3800 sq. ft., 2002 build) is a Cape Cod up on the plateau that takes the biggest hit among these, right out of the blocks. Last purchased in May 2005 for $2.490m, it starts now at $2.199m (-$291k).
Also this week, 1821 Palm
(4br/4ba, 3525 sq. ft., 1990 build, updated) – which we noted just last week in "Not Worth Their '05 Prices?
" as one that was "slipping closer" to its April 2005 price ($2.250m
) – chopped below its acquisition price to $2.175m
Pause a moment to recall the go-go days of the early-to-mid-2000s. If you bought a home in Manhattan Beach in any year starting with a 2 and later sold it, you made money. That was true for almost everyone in MB through some point in 2007. No longer.
The turnaround here is pretty stunning, even while we take as givens the broader real estate and financial market meltdowns.
The acquisition dates for these properties range from 5 years ago (Jan. 2004) to 3 years ago (Feb. 2006). If the broader local market is to be evaluated in light of these listings, these data points add to the suggestion that we're living in 2005 right now, pricewise, with real risk to the downside.Some good news:
The stock market is now living in 1997, so we're still better off in MB.