An important sale closed this week in Avondale. A lovely two story brick home at 3244 Oak Street with 4br,3.5ba, 2,960 square feet, a brand new two car garage and a 70 x 125 lot, sold for $550K after having been on the market for more than a year and a half! It was an important sale because there have been so few sales above $500K in 2009.
The house was purchased for $725K in May 2006. The owners then spent $125K in renovations which included the construction of a brand new two car garage.
They listed the house for sale at $829K in February 2008 (already less than they had in it) and then watched the market fall. By the time this listing was over a year later, the price of the house had dropped to $$699K.
It was re-listed with a different realtor at $679K and was quickly dropped to $649K, then $624K and then finally to $599K. Within 30 days of dropping to $599K, the house was under contract and then sold last week for $550K.
When the price of the house got dropped to $599K, it hit what we realtors call the “sweet spot” where anyone and everyone can clearly see that this house offered a tremendous value. Often, a house can lie dormant month after month with little showing activity and few calls, but once it hits the “sweet spot” the phone starts to ring off the hook and offers start coming.
So, the moral of the story is, price your house aggressively from the beginning or you run the risk of trailing the market down as this house did.
The market stats for this week were:
NEW LISTINGS: 8 To see all of the new listings for the week, click here
CLOSED SALES: 5 To see the list of closed sales for the week, click here
PENDING SALES : 3 To see the list of pending sales for the week, click here
PRICE REDUCTIONS: 21 To see the Full List of Price Reductions, Click Here
The big news of the week from the sales stats is: 1) A dramatic DECREASE in the number of new listings 2) A dramatic INCREASE in the number of closed sales and a Dramatic INCREASE in the number of price reductions. If we keep going like this, then a recovery can’t be far around the corner! This is what we want to see, less listings (inventory), more closings and more price reductions!
Perhaps due to the sale of the property I discussed above, there has been a dramatic price reduction on another great house on Oak Street. It’s now a short sale and priced at only $599K. Located at 3546 Oak Street, this is another classic two story brick colonial within walking distance to the shoppes of Avondale and features 3,475 SF on a 105 x 93 SF lot. It has 4BR and 3.5 baths.
This house was sold for $577K in December of 2004 and then the current owners paid $775K for it in June 2007. The original asking price on this house was $697K ($75K less than they paid for it in June 2009). We’ll see very soon if this price reflects a “sweet spot” and if it goes under contract soon. I’ll keep you posted!
Thanks for reading and I hope you’ll join me next week for another Monday Morning Market Update!