Wednesday, November 26, 2008

Tipped south of Washington

We have a split decision on the two south of Washington listings we reviewed on 10/18/08 in the single-family neighborhood bounded by California, Washington, 22nd, and 25th, that both closed yesterday.

First, the ($100K-reduced) $1,299K low-end 3 bed / 1.75 bath 1030 Chelsea (photo above), sold for $1,200K. This is way below 2007 local comps 1020 Chelsea, $1,478K, and 1024 23rd, $1,445K, a rollback to 2004 pricing.

On the other hand, 2/2 2312 California (photo below), asking $1,395K (after a quick $100K price cut), sold for $1,375K, only slightly below its previous sale 7/12/06 for $1,392K. Although it did claim $100K of fix-up, so with selling costs it's a significant loss for the seller.

Both make the recent 3/2 listing at 2507 California for $1,599K look absurd, especially as it's on the block next to noisy 26th Street.

See the comps back to 2004 at the 10/18/08 post.


Anonymous said...

Looks like it is beginning to get interesting. I wonder if all the bailouts and principal reduction plans are going to have any effect on high-end areas where loans are not usually within the amounts that Fannie and Freddie can buy.

WarChestSM said...

WB, you beat me again as I was just about to do a post on the Chelsea house! Nice work. Can't deny the rollback momentum anymore.

anon, the answer to your question is basically "no".

latesummer2009 said...

I think the pool of buyers ia getting smaller and smaller, day by day. As our financial picture worsens, less and less people will take on large purchases. This is simple economics, even for wealthy individuals.

My question once again is, why would you buy now if:

1)You could rent for less (even including the tax benefits)

2)Not risk capital


3)Buy it for less in the future?

Anonymous said...

does anyone know what the market clearing price is for the new town houses at 914 14th street?

they just were completed and hit the market - what will it take to move these - they are asking 1,195

anyone with knowledge want to share it pls?

Anonymous said...

it seems in general that the old condos are now selling for $500 a sq foot and the brand spanking new ones are $750 a sq foot

just a rule of thumb - don't know if others see it differently

Anonymous said...

"it seems in general that the old condos are now selling for $500 a sq foot and the brand spanking new ones are $750 a sq foot "

If what you want is a condo, it's very simple: RENT.

There is nothing magical about owning, either you will give money to property tax, HOA and interest, or to rent. The only difference is that the mortgage and tax and HOA per month on any condo is always way more than the same exact apartment if you rent it (on the Westside at least), so there is just no reason to buy a condo.

For houses, now you have at least a reason to buy. For a condo, it's just being weak-minded and fooling yourself into thinking you own something (you don't, the bank owns it). A condo is just an apartment you're renting from the bank.

Anonymous said...

Houses in the Highlands area of PP started out 2008(listing prices) about $650 -700 per sq ft. Now many of the recent sales and some of the listings are below $500 per sq ft. Each month the solds seem to have a lower and lower per sq ft sales price.