Listed for $688,000 in May, reduced to $650,000 in June,and then dropped to $625,000 in September, the “stunning” 672-square-foot, one-bedroom condo #706 in the Stage 1075 development at 1075 Market Street has just sold with a contract price of $600,000, a sale at which is officially “within 4 percent of asking” according to all industry stats and aggregate market reports (such as Redfin’s “list-to-sale price” metric, according to which “the average [South of Market home sells] for about 3% below list price,” or Realtor.com’s “Sale-to-list price ratio” of 97.8 percent).
Having previously traded and set a market comp at $979,000 in February of 2019, however, the re-sale of 1075 Market Street #706 represented a 38.7 percent drop in value on an apples-to-apples basis for the “bright, sun-filled” Stage 1075 condo with an assigned parking space in the building’s garage and rooftop amenities galore.
In the not so distant future $600K will be seen as a bargain price for the parking spot alone. Use the apartment to store your snow chains in the summer and bike rack in the winter.
If you just did a ham-fisted valuation at the $893 per ft.² implied by the closing price of Unit 706 discussed above, then Unit 711 in the same building should go for around $377,739, or about a 22.6 percent decrease from current the current asking price for a same-floor studio. And that’s for a unit that sold for $640,000 about six months prior to the pandemic.
I was remiss in overlooking the fact that studios should sell for a premium, on a square-foot basis, over real one-bedrooms. In any event, after being initially listing for $488,000 during the Summer of 2023, Unit 711 languished on the market for 200 days without a sale and had its listing removed, only to return to market in December of 2024 asking 13 percent less. After another 150 days the listing was removed again, and the 423 ft.² studio returned the market yet again later that same month asking $298,000, an amount for which it sold 17 days afterwards.
That sale, occurring a mere 555 days after the comment immediately preceding this, represented $704 per ft.² which is not too shabby for a studio in the Theatre Arts District, however that closing price represented a staggering, equity-evaporating 53 percent decrease — a nominal $342,000 gross loss — from the previous sale of the same unit prior to the pandemic when it traded for $1,513 per ft.². I don’t care what universe you’re from, that’s gotta hurt!
i guessed $585K. do i get a prize?