My New Outside Blog

I specialize on the condo market, and in particular, concentrate on the City of West Hollywood. I've witnessed prices go all the way up to $800 sq ft (and more) only to fall all the way down to around $400 sq ft.

I've been watching a recent listing of a 1580 sq ft condo in a particular condo building. The Unit was originally priced at $1,550,000 and just 23 days later reduced to $1,440,000 as seen in The MLS extract above.

At this "reduced price" of $1,440,000 the unit is priced at $911 sq ft.

The last comparable sale was listed at $757 sq ft and ultimately sold at $636 sq ft (Listed at $1,249,000 and sold for $950,000).

That condo and was in great condition and decorated by a designer - so it's reasonable to say it sold at the upper end of the price spectrum. It just so happens that this condo is now For Sale again at $737 sq ft ($1,099,000).

My question is about the other condo that's now offered at $1,440,000.

How can the Listing Agent and Seller begin to justify an asking price of $1,440,000 ($911 sq ft) when the last comparable sale was $636 sq ft ...and that very same unit is now re-listed for sale at $757 sq ft?

It makes no sense and unless a buyer who is totally out-of-touch offers $911 sq ft, this property wont sell unless it's priced around $1 Million.

It's effectively 30% overpriced right now!

Anyone can do the math.