This time last year when I wrote about the Lindenwood market, it was hard to imagine that things could get any better. But, if there’s anything we’ve learned in the last couple of years of this wild, escalating real estate market, it’s that prices may be limited only by our imaginations.
The Lindenwood market has stayed strong in 2014 with about a 10% increase in selling prices, up from an average of $4,636,739 in 2013 to $5,094,315 in 2014.
When you eliminate the outliers (homes that sat on the market for exceptionally long periods) the Days on Market were similar and speedy—about 14 days in 2013 and 13 days in 2014. Even in this expensive market, prices continued their steady rise, and when attractive properties came on the market they were snapped up almost immediately.
The length of the sales is notably different than last year at this time. Then, as now, teardowns purchased for land value sold quickly, but new homes in the $7 million range took around 45-60 days to sell. In 2014 there were just two brand new homes listed in Lindenwood. One sold in 15 days and the other in just 11 days. Q4, typically a slower time for real estate, mirrored the rest of the year, with everything listed in this quarter selling in 15 days or less, including one property that sold for a million dollars over list price!
Right now there are three markets in Lindenwood:
1. Brand new homes that sell for $7 million and up.
2. Older homes, sold mainly for land value, that go for anywhere from $3.5 to $5 million, depending on location and size.
3. Everything in-between, including newish houses built in the last decade or so, and older homes that have been extensively remodeled and are too nice to tear down. These typically sell for between $4.5 and $6 million.
The third type of property is the toughest sell, since buyers who are spending these large sums either prefer buying a beautiful, new home that they can move into right away or purchasing land and building exactly what they want. And then there are the investors who are looking for good lots on which to build spec homes.
To give you an idea of these markets, the following are significant sales in each of these categories in 2014:
New Homes:
100 Toyon and 120 Toyon These homes were constructed by the same builder and they were beautifully done and well sized at around 6,000 square feet of living space each. They sold in two weeks or less at $7.4 and $7.5 million respectively.
Land Value:
89 Catalpa This home was 66 years old, on a very nice lot in a great location. It sold in just ten days with seven offers for $5 million—a million dollars over the list price!
Newish Home:
150 Linden With 8,640 square feet of living space, this was a big house for the neighborhood, where homes typically range between 6,000 and 6,500 square feet. Although it was a very nice and luxurious house, it was seven years old, so not as attractive as a brand new home. The age and size probably contributed to the long sales cycle of 92 days. It eventually sold for $8,380.000, about 6% below the list price of $8,960,000.
What’s going to happen in 2015? I predict more of the same, with good properties selling quickly for rising prices. I know this neighborhood well and would love to help you if you are thinking of buying or selling here.
0
2
0
0
0
