Thursday, June 28, 2012

Seller's Unite!


On Tuesday we were telling you just how bad it is for real estate sales in Richmond right now.

Realtor James Wong's monthly R/E report, released June 16th but covering the May 2012 sales data, advised that total listings have hit all time highs, daily price reductions are common, and detached home listings in the million dollar plus category are dying on the vine.

Of the 556 homes on the market with an asking price north of $1,200,000, sales have been so bad that there were 17.7 months of inventory on the market by the end of last month.

Wong's advice to sellers was blunt: If you have to sell, much deeper price cuts are needed.

And if the data from the month of May was bad, June's results are abysmal.

Using sales reported between May 27, 2012 and June 26, 2012, and actives as of today... there is now 23 months of inventory on the Richmond Real Estate market.

Word has it that for the majority of those rare sales that are occurring, most are closing below assessed value of the property as some sellers are obviously taking Mr. Wong up on his sage advice.

But as you can imagine, this is causing a great deal of consternation for other Richmond sellers.

One Chinese real estate forum is calling on 'sellers to unite' to prevent further price drops. (hat tip to VMD on Vancouver Condo Info).
“A brand new house in good area of West Richmond, 8111 Dalemore Rd, was just sold for $1.58M, $170k lower than assessed price of $1.75M. It’s a shame that the (owner) went through so much to purchase this property and build a new house, hoping to earn some money while doing a service to the community, only to (then) recklessly slash (the) price. I call on the sellers to withhold giving in to under-asking offers. We should all pull our listings and wait until a better market to sell in a bidding war situation”
Of course, as VMD notes, do not lament too long for the hardships endured by the seller at 8111 Dalemore Road.



The 5 bedroom, 5 bath mansion was built in 2010 to replace an old-timer teardown which last changed hands for $533,000.

And while the property did recently sell for $170,000 below the 'current' assessed market value of $1,750,000, a final sale price of $1,580,000 hardly qualifies as hardship for this seller - right?

Or does it?

Maybe it really is "a shame that the buyer went through so much to purchase the property and build a new house" and not have it sell in the type of bidding war that one year ago would have realized offers of $300,000 - $400,000 over asking.

Perhaps I am being callous to the needs, hopes and dreams of the Richmond speculator?

Proletariat Unite! Protect the Richmond real estate flipper now!

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23 comments:

  1. Buyers Unite! Let's all us buyers hold back and not make any offers until prices are reduced to the point they represent fair value. We can all rent in the mean time until seller desperation kicks in.

    ReplyDelete
    Replies
    1. Maybe there should be a facebook group to rally this cause: the "Vancouver RE Spring"?

      Delete
    2. Let's all buy tents and sleep in Stanley Park until the buggers cry Uncle and give us cheap rent too!

      HaHaHa (I am just kidding of course)

      Delete
  2. What an ugly big piece of crap!!!!I cannot believe the Lower Mainland market...and Richmond..what a wasteland,not to mention a floodplain.
    I guess you don't get landscaping for 1.58mil.

    ReplyDelete
  3. Investing' in any market comes with an Inherit risk for both gain and loss potential but c'mon, what do you expect in a real-estate bubble? The gravey train has pulled out of 'Richmond Station' Some time ago and the greater fool is left on the platform crying 'poor me' 'for arrivng late.

    ReplyDelete
    Replies
    1. "Inherit risk"?
      That would be the risk that your parents HELOCed out all their equity to buy dozens of presale condos, and now you don't inherit anything but debt and lawsuits?

      Delete
  4. Cry me a Fraser River. I can't wait to read those translated forums when their "investment" in local housing has tanked by 60%.

    ReplyDelete
  5. I prefer the dyslexic version: Sellers Untie!

    ReplyDelete
    Replies
    1. There's nothing to untie... they are already (swimming) naked.

      Delete
  6. LOL... too funny.

    ReplyDelete
  7. Nothing new. Same bunch of realturds and specuvestors colluded in the same manner after the crash in 2008.
    Beware of site that stole info from your computers!

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  8. This is the same "advice" I recall a R/E agent giving in a news interview back in the early 1990's when R/E tanked. He basically said "all sellers should take their properties off the market". As if it's some kind of game everyone is playing. Some things never change...

    ReplyDelete
    Replies
    1. That is a realtor fantasy when markets fall. They wish sellers would pull listings to keep prices up. They cannot control the flow though. It is a bit like wishing you hold the winning tickets in the lotto and get to retire fat and lazy. Just an impossible fantasy to dream about as you drift off to sleep at night.

      Just a dream.

      Delete
  9. What a crock. I hope other speculators under cut the crap out of the market and hang that dipsh*t out to dry.

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  10. Greed, just plain old greed.

    ReplyDelete
  11. a sellers' strike!

    good plan and to add insult to injury
    refuse to rent out any vacant units......

    this will drive both selling prices and rents
    straight up...... like a kite to the moon

    ReplyDelete
  12. I get the distinct impression you guys don't fully appreciate the "service to the community" these owners are doing when they build a new house. (LOL)!

    ReplyDelete
  13. How about the slogan of Doris Gee and Phil Moore who are agents in Burnaby: "Making a world of difference". Who would have thought R/E agents can change the world?

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  14. Sell at last sell for least. This is just starting to unwind. Do the math my Chinese house flipping friends. Many house's around the 1ml mark of which there are many are going to drop prices to below the new rules criteria. This will then reduce the lower valued listings as the competition/quality on the top end has gotten stronger, a ripple effect that will flatten profit margins.

    ReplyDelete
  15. "let's all hold our listings until a better market" yeah great idea! like people did in the U.S ! oh wait...

    but this one's a gem:
    "...hoping to earn some money while doing a service to the community"

    hahaha... a service to the community! Brilliant!

    Proud Homeowners: Get ready for the ride of your lifetime, sleepless ride that is.

    “Madness is badness of spirit, when one seeks profit from all sources” -- Aristotle

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  16. Big favor these flippers are doing us looking for a bidding war, putting the buyer in more debt, making him work harder longer....nice,very thoughtful.

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  17. I shiver every time some fool suggest to partake in the game of chicken with the hideous free market train. As the wrath is usually immediate and life altering

    Dmitri

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  18. Global TV segment says that the market is seeing many price changes, reduced prices, highest inventory in years but puts a tag on the piece that its all good because of the draw of our mountains and oceans, don't worry be happy. Why didn't they mention that the average home owner has lost at least 10% home equity in the past few months, that is 100K lost on 1ml. What about our mountains of debt,and oceans of bad economic data, GDP,job cuts, China slow down, US melt down, European melt down, War in the ME, Global unease. Global TV has a mandate and there intentions are not sincere.

    ReplyDelete