Saturday, May 25, 2013

Reality continues to enter marketplace



Sorry for the lack of posts... it's been a busy week.

May continues to churn along with weak sales.  As Observer notes over on VCI, May 2012 was one of the most dismal in a decade and May 2013 is on track to be just as bad:


Seller's across the board are slowly acknowledging the slowdown by significantly adjusting their wild asking prices.

The latest such example comes to us on Vancouver's east side.  This is 7888 Nanaimo Street:


This 6 bedroom, 6 bathroom 2,600 square foot McMansion was built in 2009 and is currently assessed at $1,152,000.  

So why has it languished on the market? Probably because the seller has been asking an insane $1,999,999.

Last week the seller finally accepted reality and the asking price was slashed 40%.  That's $800,000 chopped off someone's redevelopment gamble.

Ouch!

The new asking price is now $1,199,999, still priced over assessment but someone's fantasy has clearly hit the wall of realistic expectations.

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17 comments:

  1. Now this story is more like it! THANKS

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  2. It's still about $600k over priced if you ask me.

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    Replies
    1. Agreed. Even with the Vancouver quality of life premium, anything much above $500k is still stupid.

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  3. I bet if somebody offers that new asking price, they reject it right away, and are merely trying to get multiple parties in to bid the property up to somewhere nearer they think the value is.

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  4. It looks like it's a triangular house. I for one will not pay even $600K for it (I think that's 9x median income).

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  5. Vancouver builds the ugliest houses in North America. Van specials, white iron fences with lion statues. So hideous all around.

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    Replies
    1. I'll bet it's not ugly if you hail from Guangdong or Bangalore....

      But hell yeah, to my eyes it's HIDEOUS!!!!

      Delete
  6. The house next to it and across the street is owned by the same East Indian builder and has been for sale for the last few year, on and off. No takers.

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    Replies
    1. East Indian builder typically = dog shit quality & poor workmanship

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  7. 1 million for a poorly built house. Ugly and poor quality. We can get real mansions elsewhere! http://www.luxuryrealestate.com/residential/search#price_max=2000000&price_min=1000000

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  8. Poorly built and ugly!!! Not worth the tax grabbing city money making assessed value!! Only in vancouver can you get a regular house for the price of luxury real estate elsewhere. http://www.luxuryrealestate.com/residential/search#price_max=2000000&price_min=1000000

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  9. What a joke of a price. I bet if that house was built and listed around 2005 it would of been half that price. I have a feeling we're going to be heading towards those prices again as sales keep languishing. If the BOC does increase rates, or if listing keep increasing, all those that bought over the last ten years will see all their equity vanish. It wouldnt shock me to see foreclosures go up tenfold.

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  10. The fantasies are going to become crushed dreams when mortgage rates rise in the next year or two. Garth even said it recently- people only have "months" left to get out. Just put that in persepective- right now most homes over $1 million have MOI close or well in double digits. They are having big trouble just making a sale right now.

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  11. Vancouver has to be the shittiest city in the world! Grossly overpriced, ugly real estate, no history, no culture, and too many self absorbed douche-bags.

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  12. Look on the bright side: at least the Mayor doesn't smoke crack....as far as I know.

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  13. Dishonest and repugnant realtor stories just keep getting better and better....

    http://tinyurl.com/p6nxv38

    Cheers,

    ReplyDelete