I just saw this post on Manhattan Beach Confidential. Granted this is well to the north of the San Diego market but this lets face it if this is happening in Manhattan Beach it can happen in any high end beach community in CA
“When MBC took note of this one finally making a deal in mid-July, after 100+ DOM, we only thought we were astonished by its drop from a start price of $2.3m. (See “Poor Homer.”)
Now that the closed sale price has posted, we’re even more amazed. It went for $1.700m, a shocking cut of $600k/-26% from the initial offering price.
The shock is magnified because a significantly smaller, older and crustier home just a few doors down recently went for more money, making a deal quickly in March – just 7 DOM. The neighbor was 207 Homer (3br/3ba, 1800 sq. ft.), which closed at $1.715m and $953/PSF.
207 Homer needed almost everything and its principal asset – ocean view from a window and a balcony – would be at risk if the next home to the west ever builds up. (This is MB; it’s only a matter of time.) By contrast, 225 Homer has an alley to the west and is taller, preserving those views.
Look at the closed price on 225 Homer and the PPSF difference is also startling – $739/PSF for the newer, larger home versus $953/PSF at 207 Homer. That’s 22% lower that the older neighbor. (Lot sizes are equivalent.)
Finally, let’s compare the newest sale with the seller’s acquisition price. In August 2002, according to PropertyShark.com, 225 Homer was purchased for $1.342m. Fully 6 years later, it was up just $358k.”
It is as if there were no housing bubble that occurred in that time frame. So this is what it looks like when you don’t cancel the listing. I am seeing cracks in the high end and I don’t think these are anomolies.
