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)

==================

Email: village_whisperer@live.ca
Click 'comments' below to contribute to this post.

Please read disclaimer at bottom of blog.

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.

==================

Email: village_whisperer@live.ca
Click 'comments' below to contribute to this post.

Please read disclaimer at bottom of blog.

Are Grow Ops the new 'fixer-upers'? Another property more than 40% below assessed value

Years ago, before real estate became speculative investments, homes were considered 'money-pits' - a dark void that sucked all your money.

And a starter home was the quintessential money pit.

As our market turns, and properties languish on the market, will former grow-ops become the new vehicle for those wishing to enter the market on the cheap and improve the home through renovations?

I say this because with properties languishing, those less desirable properties are really starting to slash their asking prices in order to find a buyer - any buyer.

The last is the above pictured 5 bedroom 3,854 square foot house.  Located in Maple Ridge at 24243 - 101a Avenue the assessed value of the home is $530,000.

But the home is a former grow op and there is some fire damage.

In the past this property would have long ago been snapped up.

But in the new reality that is the Lower Mainland market, the house sits unloved and unwanted by speculators.

And because of that the asking price continues to drop.

This week another reduction brings the asking price down to $299,900... or 43% below assessed value.

Is it a stretch to imagine it selling for $265,000 or less? (that would be 50% below assessed value). Or even $200,000 - $250,000?

At the start of 2012 that suggestion would have seemed completely outrageous, even for a fire-damaged former grow-op.

Now it's all about "how low will it go."

==================

Email: village_whisperer@live.ca
Click 'comments' below to contribute to this post.

Please read disclaimer at bottom of blog.

Wed Post #1: We now have a property being offered for more than 40% below assessed value.

Last week, in one of our posts, we made note of how it was becoming common to see listings where the asking prices on properties was over 30% below assessed value.

We asked, "how much longer until we have a property priced or selling 40% below assessed value?"

Naturally it is Observer (and his excellent blog Vancouver Price Drop) who serves up the first one for  us.

This is an apartment block in White Rock at 1371 Foster Street.

Unit #306 is for sale with the following description:

2 bed, 2 bath top floor unit in the heart of White Rock. This unit boasts a large master bedroom, walk thru closet, lots of storage and an Ocean View. Great extra’s such as in suite laundry, updated kitchen, fresh paint, attractive crown mouldings and large balcony with ocean views. Walking distance to shopping dining and the beach, no rentals, 19 plus and pets allowed with restrictions.

Assessed value? $228,200.

Current asking price? $119,900.

That's a stunning 47% below current assessed value.

Now it must be noted that this building has an upcoming strata repair assessment of $63,000 that will be levied against owners.

But notwithstanding this, we have seen condo units with large levies before and it is a reflection of the current market that even with an asking price almost 50% below assessed value, there are no takers.

Hovering near this 40% below assessed value level is a unit in this White Rock complex at 15369 Thrift Avenue:

Unit #206 is described as:

a freehold unit in the heart of White Rock, just steps to new town developments, shops, restaurants, library, hospital and beach! The unit has been totally updated and looks/feels like new. Wellmaintained complex with new roof, pet friendly and free laundry! Low maintenance fee includes heat and hot water. Live near the beach in this prestigious location for way less than the assessed value!

Assessed value: $140,800.

Current asking price: $89,000.

That's an asking price 37% below assessed value... and there's no looming strata repair bill hanging over the purchaser's head.

Right now many homeowner's, instead of heeding advice to aggressively cut asking prices, are pulling their homes off the market for winter to re-list in the Spring. They are doing this in the hope of a post-winter market resurgence.

Meanwhile other homeowners are in the process of aggressively slashing asking prices.

Will those who choose to wait, come back in Spring to a market that is even in worse shape than it is now?

We have one property (that we have come across) that is more than 40% below assessed value and many others in the +30% range.

It will be interesting to compare those numbers with levels in the Spring.

If you come across other properties 40% below assessed value, let us know and we will profile them.

At the start of the year people laughed at the concept that we would see ANY properties 10% or greater below assessed value. And now we are talking about some being 40% below assessed value.

Was it really only as recently as June 8th of this year when speculating on drops of 30% was dismissed as something out of the Twilight Zone?

==================

Email: village_whisperer@live.ca
Click 'comments' below to contribute to this post.

Please read disclaimer at bottom of blog.