I first featured 444 10th all the way back in November 2008.This is an larger than average lot at 11,250 sq ft and it includes plans for a 5,500 sq ft Robert Ramirez designed house.
Previous Purchase: 6/6/07 - $2,950,000
Listing History: 11/13/08 - $3,130,000
Expired after 126 days on market and no price cuts
Re-Listed: 1/26/10 - $2,800,000
This is a classic case of a spec builder bailing. We all knew this listing had no chance of selling back in 2008 with its bloated price, and once again I would suggest that this does not stand a chance of selling at its current price. They are asking just 5.1% less than the peak purchase price made in mid-2007.
This also illustrates once again that there is a significant shadow inventory to work through. As we keep seeing listings like this one pop up, we know that there is a lot of underwater merchandise that needs to be properly marked down and put into stronger hands. The bust isn't over and prices don't really start recovering until we have worked through much of this inventory. My bet is that it still takes another year to two to really get through this inventory so we can get back to a market that properly clears. When you see a lot of people in precarious underwater positions hoping and praying that the market will somehow "come back" and bail them out then you know there is more pain overall to come. Thanks to the reader who brought my attention to this listing.
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