Winner of the Race to $2.1m

Posted by Dave Fratello on Sunday, December 16th, 2007 at 7:00am.

If you've got to sell, one theory is that you've got to move the price enough to convince buyers you're flexible. Certainly, 2807 Elm did that.

The movement on Elm, a new home that only entered our glutted $2m+ segment in the Tree Section in late June, was stunning. It went from dramatically overpriced at $2.899m, down, down, down in $100k chunks, to $2.299m.

Now it has closed escrow at $2,100,000, fully $799k down (-28%) from start, an extra $199k off the last (reduced) list price.

This officialy makes 2807 Elm a winner of the "race" toward prices around $2.1m we saw developing in October (see "The Race to $2.1m, and Then...") – noteworthy at the time because previous clustering of comparable listings had been around $2.3m instead.

Man, did they unload this puppy. Though it wasn't super-quick (139 DOM), by comparison with other new construction, this sale happened in a flash.

2807 Elm boasts 5br/5ba, 3550 sq. ft., on a larger-than-normal 5600 sq. ft. lot that afforded a quite decent back yard. In our tour, MBC found the home charming and a bit unique. We must concede that we've received some private feedback that wasn't so positive, but we loved it and we've said so.

Now look at something else: 2807 Elm's price per square foot was $592. We haven't recorded a PPSF less than $650 since June in this segment, and mostly you see $730+.

No question, this sale has ramifications. We'll return to this with more analysis later in the week.
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