chasing The Market south
There's a Manhattan loft in a prime loft-y neighborhood back on the market recently that could be a poster child for that oh-so-painful process known as Chasing The Market. Here's the most interesting part of the history:
 

May 2008 offered at $2.195mm

July 2008 $1.999mm

September 2008 $1.85mm (pre-Lehman) then $1.749mm (post-Lehman)

October 2008 $1.675mm

then off the market for 6 months

now back 35% off the May 2008 price

 

So ... during five months last year this seller twice recognized that the asking price missed The Market, after giving The Market 60 days to 'get it' each time. When Lehman etc hit the fan, the seller reacted quickly -- twice -- still not getting where The Market really was, before slinking off The Market to either lick wounds or catch breath. Chastened and/or wounded and/or exhausted, the seller returns with new price (and a different firm) around $800/ft -- almost $400/ft below where the loft had been 12 months ago.

 

Ouch.

 

Even more interesting: this Manhattan loft did not sell in 2006 at either $1.85mm or $1.75mm (coincidentally, matching both September 2008 prices). 

 

So ... (to add insult to injury) ... this "seller" priced too high in the rising market of 2006, then priced too high in the falling market of 2008-09.

 

Double ouch. Must be pretty darn tired by now. Keep licking those wounds ....