Before the real estate crash, it was common for people to sell a smaller home and “trade up” for a bigger one. The real estate crash has rendered the “trade up” market nearly extinct. The price point hardest hit by this problem is in the $600-$900K price range.
This week, however, one of the few trade-ups of the year, closed.
The seller had a 2,630 SF house at 1487 Edgewood Avenue South that they sold for $475,000. The house they purchased at 1819 Elizabeth Place is a lot bigger at 4,089 SF. Because it was in short sale, they were able to snag an amazing deal and paid only $730K or $178 per square foot.
Prior to becoming a short sale, it languished on the market for nearly two years. The seller paid $1,200,000 for this house in March of 2005 and then re-listed it two years later (July 2007) for $1,430,000. They trailed the market down with successive price reductions as the real estate market weakened until the house finally lapsed into short sale status.
The house on Edgewood was purchased for $505K in February 2005 so they took a “hit” (slang for losing money) on the sale but more than made up for it with the great deal they got on Elizabeth Place. To see the full details on both the house at 1487 Edgewood Avenue and 1819 Elizabeth Place, click here.
There are some great deals on “trade up” houses right now in both Avondale and Ortega. To see a list of them, click here.
Thanks for reading, please join me for my next adventure in the Avondale, Ortega and Riverside real estate markets.