Well, it’s Monday evening — not morning! Sorry I’m a bit late with my weekly report but here are the stats. For the week ending 10/11/09, there were
New Listings – 10
Closed Sales – 2
Pending Sales – 1
Price Changes – 15
As I study the data, two things “jump” out at me — the (note the word “the” – there’s only one this week) pending sale is a beautifully renovated two story home on College street complete with two car garage, gas cook top in the center island and steam shower. The sellers paid $410K for it in Jan. 2007 and then did a master bath renovation.
A year and a half later in July 08, they put it on the market at $449K and left it there for a year until it expired. Then, in Sept. 09, they put it on the market for $330K ($80K less than they paid + renovations) as a short sale. The asking price was only $119 per square foot — a real deal — which is what today’s buyers are looking for. End of the story? It went under contract in less than a month! Stay tuned to see what the final sales price was!
The other transaction that popped out at me was a closed sale on 1389 Belvedere in Avondale. It was also a distressed sale and was a two story brick 4br/2ba with 2,190 square feet. It was purchased for $320K in Nov. 2004. There is no “interim” history, so we don’t know when the property fell into arrears but the bank took title to the property on 8/14/09, the property was listed for $257,900 on 8/20/09 and it was sold on 10/06/09 for $253,000 with a $10,000 contribution from the seller for closing costs and prepaids. This equates to a net selling price of $243K or $113 per square foot — and the house had a nice kitchen.
So….the moral of the story seems to be: Distressed Property in Good Condition + Low Price = Quick Sale!
Be sure to take note of the consistently high number of Price Reductions. In the past 3 weeks that I’ve studied/provided market statistics for the Avondale, Ortega and Riverside markets, there were 12 price reductions the first week, 19 the second week and 15 this week. That’s a lot of price reductions! We see over and over again that when a property gets reduced enough and hits the “magic” number proving itself to be a tremendous value, buyers take note and there is generally an offer shortly thereafter.
Thanks for reading! Have a great week.