Address: 1733 Sunset - 90405Details: 3 bed/2 bath 1,281 sq ft house, 5,236 sq ft lot, 1962 construction
Description: This extremely charming home has a gourmet kitchen with granite, Miele and Sub Zero. Open floorplan between the family room, dining area, and kitchen. Bamboo floors throughout main living area. Master bedroom with french doors leading to a large wood deck. 2 additional bedrooms - one with a fireplace. There's a back patio, water feature, hot tub, and multi-level tropical garden with various palms and succulents. It is truly a tropical oasis!
Previous Purchase: 4/30/02 - $710,500
Listing History: 11/12/09 - $888,000
SOLD: 1/7/10 - $901,000
This house was only active for 8 days before going into escrow and eventually selling for over list price. The seller did a great job of pricing realistically.
The house itself looks decent, some minor improvements here and there, a few interesting features (looks like a cool deck)...but the biggest issue for me would be the fact that it appears to be near Penmar and thus close to the flight path of the airport. You guys know that area better than me so maybe the airport noise wouldn't be too horrendous in this location...?
Anyway, if we inflation adjust the 2002 price using a 3% inflation rate, we get almost $900k. Hey, that's what the buyer here just paid! Some would argue that the early 2002 price was already somewhat bubbly but I don't think it is a completely unsafe reference point. You've just got to realize it isn't rock bottom pricing to start from.
The next way to look at the rollback would be to try and figure out what type of a nominal rollback this is. Start with $710k back in early 2002 and figure 10-15% annual appreciation. Let's split the difference and use 12.5%/year. If you compound that over two years you get $900k. So you could then say that the buyer just got roughly an early 2004 rollback.
So this looks like an inflation adjusted 2002 rollback and a nominal 2004 rollback. Not too shabby. This is why I think you can start to poke around and find some selected spots of value in the market. This house isn't going to fall to $500k or something like that. I would be pretty surprised to see something like this get into the $7s...so maybe 10% downside left over a few years max? It might have some more downside, but as I've said before, it is likely more of a slower trickle which lasts another few years rather than some dramatic gap down. I'm not arguing for the chance of any appreciation any time soon, but I don't think this is a terrible buy right here at this price. Am I being too optimistic?
I think this was a fair price. A little airport noise, no view mentioned, don't recall the floor plan on this...was it the bedrooms below with living area on entry level? Smalllish lot and not usually useable backyard in that location generally.
ReplyDeleteI do think things are settling down....and thanks for covering Sunset Park!!!! Its our target market for a home!
I think $703/sq. ft. is still a little high, and although I don't really know the area, I also have trouble imagining this renting for $4500 a month. Not a terrible deal by any stretch, as it does look like a nice place. I'm ignorant of location factors.
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