Google+ 10/19/2015 - 10/25/2015
10/19/2015 - 10/25/2015

Of the 7 closed sales this past week, 3 of them had price/square foot numbers in the 500's.  One of those homes, a 2,190 SF, 3 bed/2.5 bath Spanish-style Bungalow on Oak Avenue, was actually a beautiful property with several recent renovations, but ultimately it's final sales price suffered from location.  Location is key in determining the max possible sales price a home can get you.  While a homeonwer may see value in continuing to make improvements to their property, at a certain point the market value added by those improvements is inhibited by the property's location.  A property's market value can only increase as high as the demand for that property will let it, and even with all the renovations in the world a homebuyer's desire to live in a particular location is capped at a certain price point.

This isn't to say that Oak Avenue is a totally undesirable location, but it is a relatively busy street with a less desirable school system than say, Mt. Carmel.  You put that same exact property, on the same sized lot somewhere in the Mt. Carmel neighborhood, we are probably looking at a final sales price somewhere in the mid to high $1 millions with price per square foot numbers closer to the $750-$850 range.  Instead, it sold for $1,275,000 (582/SF).