Double Your Money?

We thought this would happen more last year. 

The word was out on the street already: Bidding wars are back. Prices are rising. Some sales are shockers. In short: It might be a great time to sell.

With that, we expected more listings, and more shoot-the-moon prices, with sellers jumping far ahead of the market, "just to see what happens." But in 2013, not so much.

Today's new listing at 312 44th does seem to fit that category. The $2.700M start price on this ocean-view condo is around $1,000/PSF – not unheard of for something slick with views in the Sand Section. But the building that this one is a part of has not been an easy sell in the past, and the price is double what the sellers paid just 3 years ago.

The building has been tough because of that often overlooked key factor in real estate: Location. It's right on Highland Ave. in furthest north El Porto. That means constant traffic noise and a bit of a challenge to walk around town. (This unit is back behind the ones fronting Highland.)

This one is pretty big for a condo (4br/3ba, 2675 sq. ft.) and gets its ocean views over rooftops. (See the listing photo.) It's fairly new (2009 build date) and these are the first owners. They picked up 312 44th for $1.269M in Jan. 2011. So today's list price is well over twice the acquisition price. (Not that that's controlling, but it's notable.)

For more on the history of this building, see the end of this post.

When we think of ocean-view townhomes in El Porto shooting the moon, we think of 316 45th (3br/4ba, 2140 sq. ft.), a nearby neighbor that sold last year.

Last August, they shot for $2.635M for a TH they had basically just bought for $1M less. (See "Good Work If You Can Get It.") Alas, they knew that 2.6+ pricetag was crazy and they took a lot less: $1.995M in a fairly quick deal (sale closed in November). It was still a nice profit.

The views there at 45th were really, really something, panoramic and huge, unobstructed even by rooftops, and with almost nothing to the north. (Some power lines and a gas station.)

So the question at 312 44th, where the views are nice but not like 45th's, is whether they'll go more the way of 316 45th and take a good deal, or hold out for a "make me move" price. (It's a FSBO so you have a hint there.)

As we scan the market now for some other, shall we say, ambitiously priced homes in MB currently, 312 44th is joining:

2903 Manhattan Ave. (3br/4ba, 4175 sq. ft.), a 90s Southwestern with great views, asking $5.000M;

3314 Laurel (4br/3ba, 3335 sq. ft.), a nicely remodeled 80s original, asking $2.699M; and

588 36th (5br/5ba, 3300 sq. ft.), asking $2.299M after a run on the market last year at the same price.

Everyone's got their argument for why they should get their number. We'll watch the market settle the question for each one.

For more on 312 44th, see the full article “Double Your Money?” at  MB Confidential.