Up to 44% Off "Sale"

As I was walking down Robertson yesterday seeing all the "sale" signs in the boutique windows, it reminded me to check back on some of the new-construction properties to see where we are on pricing.

In this post we look at the "841 Westmount Townhomes" project.

I found additional details and pictures in this RE agent's blog posting from March.

841 Westmount Drive (90069)
On Market Since: April 2008

16 Brand New Luxury Townhouse Style Condominiums. 1st floor is an open floor plan that has living room,dining and kitchen with powder room. 2nd Floor two large bedrms with access to an outdoor patio or private balcony. 3rd Flr is a private rooftop patio with unobstructed views. Units at present can be customized to buyers specifications of floors, paints, etc. Common areas include a pool, sauna and workout room. Come by and see for yourself and find out why this truly is an Oasis in the City

The blog I referenced indicates (as of March) that 5 of the units were sold and 1 pending. There are no public sale records available, so not sure if that's accurate.

Redfin has 6 units currently listed for sale. A look at the original (OK, delusional, but a reference point as to how far we've come) prices and the current list prices is below.

Unit / Size / Original List in April '08 / Current List / % change
(all are 2BR / 2.5BA units)

#2 / 1,352 sq ft / $975k / $799k / -22%
#15 / 1,504 sq ft / $1.225M / $849k / -44%
#9 / 1,570 sq ft / $1.15M / $825k / -39%
#10 / 1,200 sq ft / $975k / $775k / -26%
#8 / 1,504 sq ft / $1,225M / $849k / -44%
#11 / 1,352 sq ft / $1.075M / $799k / -35%

So, is 44% "off" a deal, with those approx 1500 sq ft units priced at $849,000?

A Redfin search of WeHo condos and townhomes between 1250 and 1750 sq ft brings up 36 units (not including the 841 Westmount units). Of those, 24 are priced less than $849,000. Obviously, that doesn't speak to location, amenities, etc, but there's a resonable amount of supply at that level. The "good news" is that the newest listing is only 3 weeks old, so there hasn't been a ton of new listings coming on the market recently.

You wonder if the developer has reached his/her pain threshold as there have been no additional price reductions since March. Even if six of the units have sold, that's less than half of the total. As we've profiled with other new-construction properties, developers in this situation appear to be fighting the dual headwinds of 1) trying to at least cover their costs while 2) not pissing off those who bought at higher levels in the building. At some point, neither will matter.