And today I have another example of a Boomer who may have pulled the Boomer Trigger to undercut other sellers in a stagnating/collapsing market.
It's address is 6840 Coltsfoot Drive (near Granville and No. 1 Road).
Billed as "4 bdrm plus den 2 1/2 bath home in great area, perfect to live in now and redevelop later", the house was constructed in 1973 and it is a 1,992 square foot home sitting on a 7,385 square foot lot - perfect for the speculator redeveloper.
Throughout 2010 and the start of 2011 these properties were the hottest thing going in what was known as HAM central - the Vancouver suburb of Richmond.
But 2012 isn't 2010 or the start of 2011.
Recognizing that the Richmond real estate market was already stagnating, the owners of 6840 Coltsfoot Drive listed their home for sale on January 16th for only $968,000...
That's right, the original asking price was below assessed value!
6840 Coltsfoot Drive recently sold... for $800,000.
That's right. Assessed at almost $1.1 million. Listed for $968,000. Asking price cut to $868,000. And it just recently sold for only $800,000.
Is this the sign of what's to come?
And what of the Boomer next door or down the Street?
Those bidding war prices, along with the original asking prices, were way above assessed value.
We profiled a couple of those sales here.
Earlier this year we profiled an owner in Terra Nova who slashed almost $1 million off his $2.3 million asking price. Now we have this lower tier example of a house being sold for significantly below 'appraised value' .
Smart Boomers (those who are wise enough to see what is happening) are pulling the Boomer Trigger and selling for whatever they can get.
As a Boomer do I dump mine too? Or do a wait to see if the market recovers?.. only to discover a market that continues to stagnate as inventory hits 22,000 or 23,000. If I wait... will the only offers coming in at that point be for $650,000?
How long before homeowners drop by this site which is showing Richmond homeowners how many of their fellow residents are cutting asking prices on their homes??
We shall see.
Clearly the pressures of the market are starting to wear on some sellers.
And price cuts are happening everywhere, even the west side of the City of Vancouver.
As noted on the blog, Real Estate Talks (hat tip Makaya), there were 9 price changes on the west side on Friday, all decreases:
4460 West 6th was $2,748,000, new price $2,640,000 (–$108,000)
3760 West 17th was $1,698,000, new price $1,598,000 (–$100,000)
160 West 59th was $1,350,000, new price $1,280,000 (-$70,000)
475 West 38th was $2,990,000, new price $2,780,000 (-$210.000)
5637 Baillie was $2,348,000, new price $2,331,000 (-$17,000)
4452 Crown was $2,680,000, new price $2,550,000 (–$130,000)
1816 McNicoll was $2,498,000, new price $2,350,000 (-$148,000)
5276 Blenheim was $3,388,000, new price $2,998,000 (–$390,000)
3348/3352 West 3rd was $2,198,000, new price $1,988,000 (–$210,000)
Every single day we are seeing between 150-200 price changes in the Graeter Vancouver market.
If you bought one of the 9 places listed above last year with a minimum of 5% down, you are seriously underwater today.
And just think... these homes will sell for much less than what is currently being asked for.
Sellers not attuned to this dynamic are simply cutting their asking price to somewhere just above assessed value, or not at all.
And what of those out there - naively unaware of the current market dynamics - currently looking to buy a house.
Some sellers are salivating at the prospect.
The Financial Post is suggesting another round of mortgage wars is on the way.
Could it be that there are some house horny young couples out there who can be induced into the market in the next few months?
I can't imagine anyone doing so, but you know there are some foolishly itching to exercise a recent mortgage approval; a move that will trap them in what is increasingly a falling market.
They will think they are getting a good deal.
Their realtor will say "it's a great time to buy" (translation: "it's a great time for me to make a commission.")
They will rationalize their deep desire to own their own home and it will overwhelm the common sense of all the mainstream media articles out there right now warning of a looming housing collapse.
But these buyers will be catching a falling knife... and making the most disastrous financial decision of their lives.
For everything there is a season... and buying right now is 'out-of-season'.
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