Details: 3 bed/2 bath 1,271 sq ft house on a 6,000 sq ft lot
Description: OPEN SUNDAY 12 NOON - 2 P.M. THIS 1940'S SANTA MONICA BUNGALOW HAS BEEN OWNED BY THE SAME FAMILY FOR OVER 45 YEARS. AND NOW YOU HAVE THE OPPORTUNITY TO MAKE IT YOU OWN. FEATURING THREE BEDROOMS AND TWO BATHS. A FORMAL LIVING ROOM WITH A WOOD BURNING FIREPLACE, DINING, DINING AREA, LARGE KITCHEN, SERVICE PORCH, A TWO CAR GARAGE AND GUEST ROOM ATTACHED. LOCATED IN THE FRANKLIN ELEMENTARY SCHOOL DISTRICT AND WITHIN CLOSE PROXIMITY TO ALL OF THE SHOPS, CAFES AND RESTAURANTS IN THE NEIGHBORHOOD.
Listing History: 1/26/12 - $1,325,000
I saw this property come onto the market and instantly though, "hot damn, that is exactly what multiple buyers out there are going to want, but I wonder if they are pushing it a bit with that price". Then I remembered that during the time since we have seen a comparable property in the same area sell, interest rates have continued to fall, the stock market has continued to go up, and the economy has kept growing. Add to all that, there is literally no other supply of this type of entry level property in this area. Given all these positives I figured that they would have a good chance of getting their price.
After being on the market for just 8 days, the property went into escrow and is currently "pending". So I think they got their price or damn close (or maybe even more). They didn't even have to have an official "open house" to get the thing to pending (although it is supposedly open today). A broker's open house on Tuesday is all you need to sell a property like this these days if it is priced right and well located.
But let's go back to price for a moment. The best two comps I know of are the following:
2620 Washington - (which I featured on the blog) 2 bed/2 bath 1,380 sq ft on a 6,800 sq ft lot (semi-remodeled). SOLD 2/11 - $1,255,000
2624 Washington - (MLS link here) 3 bed/1.75 bath 1,539 sq ft house on a 6,728sq ft lot (Spanish house). SOLD 7/11- $1,250,000
Both of these houses are closer to busy 26th street so I think some discount is relevant. However, the current house in escrow has a smaller lot and smaller interior square footage. You can play with the pros and cons a bit and make adjustments but any way you cut it, it seems like prices are pretty stable for these types of properties. It is also interesting that for both of these comps, they started out asking higher prices and the properties did not fly off the market. They had to cut down into the $1,250,000 range to sell. Now, this property is starting $75k north of that and instantly went into escrow. That should tell you which way the market is going.
Over $1,000 a square foot and you call that a starter? I call it insane.
ReplyDeleteI could really blow your mind with some vacant lot sales Jim. Those are like a trillion dollars per square foot!!
ReplyDeleteCall in insane all you want Jim, but this is high quality north of Wilshire entry level and these prices seem here to stay. Santa Monica (and north SM in particular) isn't a sleepy little beach town where anyone and everyone is entitled to own a house in this type of location. Santa Monica is one of the most expensive real estate markets in the nation. Throw out your notions of "insane" and realize that there is a tremendous amount of wealth and income in this area.
ReplyDeleteI think Jim is just asking for some qualification on the term "starter". In the context of north-of-Wilshire in Santa Monica, it might be considered a starter, but not too many other places, even on the west side.
ReplyDeleteThis is a Santa Monica blog which focuses on small areas of extremely expensive homes. I don't think I should have to qualify things like this.
ReplyDelete...and it's already pending. I think that qualifies as one that flew off the shelf.
ReplyDeleteAnd regarding the term starter, it's a 1200 SF house, what else would one call it? A DINK couple making 300K could easily afford it. And no matter what the old timers think, there are lots of those couples around.