Will this be the next Richmond property that sells for -50% below assessed value?

Yesterday we told you about a condo in Richmond which sold for -50% below it's assessed value.

It was Unit #204-3411 Springfield Drive.

There's another court-ordered sale in the building, this time it's Unit #125. 

This one seems to be a little better looking than #204, which probably explains why it's assessed at a higher value:

#125 is assessed at $289,400.

As we mentioned with #204, there are no special assessments pending in this older building (built 1972) and amenities do include an outdoor pool.

Like #204, this one is a 3 bed, 2 bath unit.  However #125 is larger by 140 square feet (1345 vs 1205). So will #125 fair better than #204?

Assessed at $289,400, the current asking price is $195,000 - $94,400 and 33% below assessed value.

Will this unit sell for 40-50% below assessed value now that #204 has sold so low?

Meanwhile Scotiabank has declared the threat of a housing collapse over saying the Canadian housing market appears to have achieved "a soft landing"... so far.

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Richmond records a property sale at -50% below assessed value.

Last Thursday we asked: How low will it go?

#204-3411 Springfield Drive, a foreclosure sale in Richmond, had dramatically dropped it's asking price. 

Listed as a spacious 3 bedroom, 2 bath, end unit condo overlooking the courtyard, it has languished on the market since May.

Assessment value: $265,900.

The asking price two weeks ago?: $185,000... 30% below assessed value.

Last Thursday another $45,100 had been chopped off that asking price and was now listed for  $139,900

(click on image to enlarge):

That's $126,000 below assessed value or 47% under assessed value.

In the comments section we were urged not to get excited because this was a marketing strategy.  Wait until the offers came into court and then see what happens. (the argument being a bidding war in court would push the value up significantly from that 47%  below assessed value listing price).

Well... #204-3411 Springfield Drive has posted at sale now (hat tip: bopeep @ Vancouver Price Drop).

No bidding war, though.

It sold for $135,000.

That's $4,900 below the last listing price and a full -50% BELOW assessed value.

Good thing we waited to see what would happen in court because now we know that Richmond has officially recorded a sale of a property at -50% below assessed value.  

For those who complain that these dramatic drops only represent the 'shit properties' (as one contributor observed yesterday), foreclosure court in Richmond has another sale on Monday.

This is #135-8880 Jones Road in Richmond.

The listing describes the property this way:

North-West corner large one bedroom with windows on 2 sides. Huge sundrenched 300 sq ft patio, gas fireplace, insuite laundry. Less than 10 steps to elevator & courtyard. Central location, just 5 blocks away from bus stop & 2 blocks from shopping mall. PCDS dates October 26, 2012. Parking stall #220, 2 small pets (cats or dogs) allowed. Rentals restricted to 15 currently at maximum. Priced over $50,000 below city assessed value for immediate sale.

#135-8880 Jones Road is assessed at $249,000.

It posted a sale in foreclosure court on Monday for $195,000 ($5,000 below the listing price, a listing price which was $50,000 below assessed value).

Was the low asking price part of a strategy?  If so, there were no bidding wars in foreclosure court on this property either.

Now this sale price is only -22% under assessed value.  Buy think about that for a moment.  Only -22% under assessed value?

Let's recall that it wasn't even 12 months ago we were telling you about properties in Richmond engrossed in bidding wars and selling for $200,000 - $300,000 over asking prices (which in themselves were hundreds of thousands over assessed value).

#135-8880 Jones Road is the new reality.  As bopeep reminds us, this condo sold in 2007 for $215,000.

This condo may have "only" sold for 22% below assessed value, but it sold for $20,000 less than what the condo exchanged hands for in 2007.

That's five years of so-called real estate appreciation wiped out in a heartbeat.  The seller LOST $20,000 in the actual transaction, not to mention five years of condo fees, interest on mortgage, realtor transaction fees and lost income by not investing elsewhere.

Doesn't real estate always go up?

The melt gathers momentum.

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Thurs Post #2: Holy Asset Depreciation, Batman

How low will it go?

Last Friday we told you about #204-3411 Springfield Drive in Richmond. Today we have a significant update.

When we brought it to your attention, it was one of our newest entries in the 30% below assessment assessment club. Here is the screenshot we showed you last week - provided by the blog Vancouver Price Drop

(click on image to enlarge)

The condo is a foreclosure sale.

Listed as a spacious 3 bedroom, 2 bath, end unit condo overlooking the courtyard, it has languished on the market since May.

It has a huge private enclosed balcony off the living room, generous-sized bedrooms, a walk-in closet and 2 piece ensuite bathroom in the master bedroom.

Complex amenities include: sauna, outdoor pool and 2 guest suites. It's locate within walking distance  of the Steveston Public Market, Richmond dyke's, a park, public transit, Manoah Steves Elementary  School and Huge Boyd Secondary School. 

Assessment value: $265,900.

The asking price last week: $185,000... 30% below assessed value.

Well, that asking price has been slashed again - big time. Chop another $45,100 off that price and the current asking price is now $139,900:

That's right, from $185,000 down to $139,900.

It's now $126,000 below assessed value or 47% under that last assessed value.

Will this be the first property in Richmond that sells for 50% below 2012's assessed value?

This complex was originally built in 1972. With weekly drops like the last one, we'll be down to the original selling price before long.

Even if you don't go back that far, the past decade has already been a wild ride for the 'value' of this unit.

(hat tip bopeep @ Vancouver Price Drop)

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Realtyland - where prices don't fall, they 'flatline'

As November comes to a close, sales continue to lag despite some shrinking of the massive inventory that has built up since the start of the year.

And you can sense the desperation.

If the average home price had increased almost 6% since last year, the headlines would be screaming that prices continue to shoot upward.

But they're not shooting upward.  As the month comes to a close the average price is down 5.7% - so will headlines claim prices are falling?

Of course not.  In Realtyland prices aren't falling at all... they're 'flatlining'. Now 'flatlining' is a most interesting choice of words, don't you think?

But this is the spin as we see in the press today.

Housing market has 'flatlined'

The average home costs about 5.7 per cent less than 2011

Housing market has 'flatlined'

VANCOUVER (NEWS1130) - If you've been staying out of the housing market, waiting for a big drop, you might be in for a long wait.

Metro Vancouver's housing market is in a 'flatline' pattern, according to the numbers.

The Conference Board of Canada's latest look finds the average home costs less than last year, by about 5.7 per cent. Resales are up 3.9 per cent over the previous month but still down more than 20 per cent compared to last year.

Tsur Somerville of the Sauder School of Business says the signs don't show a collapsing market. "They're more suggestive of a leveling out, but looking at a period where the housing market is at a slower, calmer place."

Somerville says that should give people the chance to look around without major stress. 

"There's not a lot of pressure or worry that somehow if you miss a house now, that there won't be any next month, or prices will be out of your reach."

Somerville says it would take a major change in interest rates or an economic shock for the housing market to plunge dramatically.

As always, it's Tsur Somerville telling us those declining prices aren't declining prices (?) and if you're waiting to buy, don't... cause those declining prices (which aren't declining) won't keep declining.

Speaking of declining prices, earlier this week Observer had some new additions to the 30% below assessed value club for us on his blog Vancouver Price Drop.

In Abbotsford #1411-34909 Old Yale Rd is listed for 32% below assessed value:

In White Rock, #302-15342 20th Ave has dropped it's asking price to 32% below assessed value:

In Richmond, #204-3411 Springfield Drive is now 30% below assessment:

And in Pemberton, 7306 Clover Rd joins the 40% below assessment club:

Somerville says it would take a major change in interest rates or an economic shock for the housing market to plunge dramatically.

I guess that means the 30% and 40% below assessment club would become the 60% and 70% club at that point.

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