Inventory's tight, and the market has recently experienced a huge surge in values.
Why wouldn't a seller shoot for the moon?
And then, eventually, some will have to correct.
Like today, a luxe custom Tree Section home at 2311 Laurel chopped $500K, but it's still at $10.995M.
That led us to investigate and put some data together.
Here are the biggest price cuts we've seen here in 2023.
Biggest Cuts on Active Listings
There's no doubt about this year's biggest price cut within the calendar year.
It's at the big Hill Section home at 500 N. Poinsettia (5br/8ba, 8389 sqft.).
This estate came roaring out of the blocks asking $22.000M last August.
The highest recorded sale on the MLS in the Hill Section was 814 Pacific (6br/6ba, 10,000 sqft.) at $20.000M in Aug. 2017, owing in part to the far greater amount of land (23K+ sqft.). (See "Just a Couple $20M Sales," from Aug. 2017.)
Alas, after about 9 months, the price on Poinsettia finally came down, fully $3.000M in one cut, in May this year. It's still active, with 318 DOM at this writing.
500 N. Poinsettia is listed by Kristi Frey, Strand Hill Properties.
413 9th (6br/5ba, 3800 sqft.) is a remodel on one of the ultra-prime flat walkstreets in the South End, east of Highland.
(The neighbors on the block have even branded themselves the "9th Street Crew" with swag and more, see MB News on the "crew.")
The price cut here is less than 1/3rd of the $3M cut on 500 N. Poinsettia: -$905K, reached over 4 cuts within the calendar year.
It's newly at $6.095M after 200+ DOM.
The start price in Oct. 2022 was $7.000M.
413 9th is listed by Alexandra Gauss of Strand Hill Properties.
Meanwhile, just $10K behind...
1908 The Strand (3br/3ba, 1733 sqft.) is a modestly sized, nicely remodeled cottage in an ultra prime midtown location on the waterfront.
You could argue that the land value alone here is extraordinarily high and that the home itself is a bonus.
The listing began at $14.395M in July '22, but cut $895K in May to $13.500M.
1908 The Strand is listed by Bryn Stroyke, Bayside.
1639 3rd (5br/3ba, 4098 sqft.) is a wonder, one that is easy to call "truly unique" among the incredibly diverse housing stock of Manhattan Beach.
The classic Queen Anne revival style house was built in 1907 on a hillside location overlooking MacArthur Park in Los Angeles (spelled "McArthur" in the listing). But it was picked up and moved to Manhattan Beach in 1983.
It's well kept and furnished in keeping with the style, a bit like a museum piece.
There are neighborhoods filled with homes like this up and down the west coast, but Manhattan Beach is not one of them. The question has always been how it would strike local buyers here today.
The listing began at $3.749M in Feb. 2023, and cut $549K this month to $3.200M.
1639 3rd is listed by Alejandro Abad, Tower 60.
2311 Laurel (6br/9ba, 6523 sqft.) is an ultra-custom 2019 build with a pool, on a large lot (8K+ sqft.) in the Tree Section.
Aiming to join the highest of the high sales in the Trees, this one launched at $11.495M in May.
Seven weeks later, they've now cut $500K to $10.995M.
2311 Laurel is listed by June Emerson, Vista Sotheby’s International Realty.
More Active Listings Down from Prior Years' Prices
We were focusing above on listings that have made big cuts within the calendar year 2023.
There are a couple more that are down quite a bit today from their original, 2022 asking prices.
3203 Vista (5br/5ba, 3178 sqft) was asking $6.750M in Aug. 2022
That listing shut down, and the home came back at $6.199M in January, and sits at $6.099M now.
So this year's cut was only $100K, but the price is down $651K from the first try last year.
3203 Vista is listed by Daniel O'Connor, Pacifica Properties Group, Inc.
513 N. Dianthus (3br/3ba, 2770 sqft.) should be familiar to anyone watching the local market.
It spent a little time on the market in early 2022 before selling for $3.200M in April 2022.
After some cosmetic remodeling, and evident change of plans, the house came back asking $3.600M in Aug. 2022.
It was at $3.295M in rolling over to 2023, and after various changes in listing agents, it's newly down to $2.999M now.
So that's -$601K from the very first try last year, and -$296K within the calendar year.
513 N. Dianthus is listed by John Corrales, Compass.
Lowest Price Drops on 2023 Solds
We also took a look at sales that have closed in 2023, and tracked where their final settlements ranked against their very first market prices.
Now, the most dramatic drops from start do tend to go way back, and sometimes to prior listings of a property while they were in a much earlier price-discovery phase.
Take 235 N. Dianthus (5br/5ba, 5152 sqft.) for example.
The very first listing, in June 2021, emerged at $9.300M.
Whoaaaaa, horsey!
Among all the things that were ever going to happen, that was not one of them.
The property re-listed at $8.000M in early 2022 with a local agent, and finally sold for $5.000M in April 2023.
That was -$4.300M from the original ambition, a significant, um, adjustment from expectations.
Not too far behind...
3404 The Strand (8br/8ba, 5568 sqft.), really two houses on one lot, was first listed way back in April 2022 at $14.995M.
A different agent took over weeks later, eventually getting it down just under $13M.
A third agent started all over again this year, in February, at $12.499M, eventually closing it at $11.211M.
The total drop from original (2022) asking was $3.784M.
But "only" $1.288M of that reduction occurred within 2023, on this listing that actually sold.
Back in the Hill Section, and back on Dianthus...
319 N. Dianthus (5br/7ba, 5685 sqft.) is new construction.
It debuted at $12.999M new in August '22.
It had cut to $10.995M before making a deal late in 2022.
When it closed for $9.800M in January 2023, it was a rather quick and substantial drop of $3.201M from start.
Other notable drops from original prices:
2415 Manhattan Ave. (3br/5ba, 4275 sqft.), listed for $12.000M in April 2021, down to $9.995M in Jan. 2023, just sold this month for $9.375M, a drop of $2.625M from the first ask.
340 6th (5br/5ba, 3842 sqft.) began at $8.500M in Sept 2022, re-listed early this year at $7.450M, and finally sold for $6.550M in April, a total drop of $1.950M from the original price.
