We're gradually working off the overhang of new construction in the Tree Section.
Nearing 2 years after its launch, 757 30th recently closed for $1.8m.
That means the start price of $2.699m around Thanksgiving 2007 was high by 33% (+$899k) over the eventual sale price. Yes, it did seem a bit out of whack coming out…
We're gradually working off the overhang of new construction in the Tree Section.
Nearing 2 years after its launch,
757 30th recently closed for
$1.8m.
That means the start price of
$2.699m around Thanksgiving 2007 was high by
33% (+$899k) over the eventual sale price. Yes, it did seem a bit out of whack coming out of the gates.
Here's yet another case of new construction slated for a $2m+ price that has come in significantly below $2m. (A list of new-construction closings over the past 6 months is found in
MBC's story setting up the pricing poll on
2401 John.)
This slightly-larger-than-average speckie (5br/4ba, 3350 sq. ft.) definitely offered a quiet location on 30th, and a sunny southern orientation along the length of the house. The 4800 sq. ft. lot is oriented wide, but shallow, along 30th, rather than running deep back along a narrow lot, as is typical in the Trees.
Despite the home's good points, there was this curious strike against the location – less-than-beautiful neighboring homes that provided much of the atmosphere. (See one of MBC's least-appreciated stories, "
The Wreck Next Door," for more.) There were various other issues with the layout, the tree out front and the difficult-to-navigate driveway, but many issues can be cured with price.
No one made much, if any, money on this one. The lot was acquired for
$1.3m in January 2006. By May of that year, construction loans of
$1.680m were online. With 3 and a half years of carrying costs, sales commissions and construction costs, we don't see how the $500k difference between lot price and final sale price makes everyone whole.
Of course, a lingering speckie dropping below replacement cost is going to leave a trail behind it.
The loans first went bad in March this year with an NOD.
Later, the bank itself – yes, that once ever-present construction loan source for local speckies –
went bad and vaporized.
But this home found a buyer amid the mayhem, and the auction slated for this Summer was successfully postponed, and canceled, as a result. (We mentioned 757 30th as one "foreclosure" apparently "Saved by the Sale" in "
More on 'Foreclosures' in MB, Pt. I.")
As we often say in observing these sales, $1.8m is still an impressive price, even if there was no profit in it. Meanwhile the downward trend in new-construction sales prices continues.
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While we're wrapping up one sale on 30th, we'll point to another in the Sand Section.
445 30th (3br/3ba, 2600 sq. ft.), described by MBC as "a pretty sweet and spacious Spanish, an older home with some additions and nice updates," just closed for
$1.6m. The deal came together and closed quickly.
As we noted just 6 weeks ago in "
Welcome Back," when the newest listing began, the home was first listed in March 2008 at
$1.999m, trickling down to
$1.795m by July 2008, when it quit.
To simplify, they tried at $2m, then at $1.8m and sold at $1.6m, down 20%.
The closed price now is actually $25k higher than the list price from this July. The PPSF, at
$615/PSF, is a good deal for the area – beaten only a couple of times recently by comparable homes.
One superior deal by PPSF shows the perils of timing. Just a few doors down, a much newer, much larger (5br/5ba, 3350 sq. ft.) home at
465 30th sold short for
$1.720m, or
$513/PSF. That was in late May, after months upon months of trouble and uncertainty – a contrast to the simpler deal this week on the same block of the plateau.
Please see our blog disclaimer.
Listings presented above are supplied via the MLS and are brokered by a variety of agents and firms, not Dave Fratello or Edge Real Estate Agency, unless so stated with the listing. Images and links to properties above lead to a full MLS display of information, including home details, lot size, all photos, and listing broker and agent information and contact information.