HAM exit stage left?

Faithful readers know we have pondered about what might happened when the Hot Asian Money (HAM) that has flowed into Vancouver suddenly needs to depart.

A lot of money has been parked here are as China experiences it's own real estate bubble, a bubble driven by more stimulus money, per capita, being injected into their economy that has been injected in the USA.

But as we discussed on Thursday, a real estate crash is underway in China. 

As margin calls come due for many mainland Chinese who have invested here, the impact of the need for liquidity cannot be underestimated.

The very first signs of this starting to happen are evident in the absence of HAM in the Vancouver spring real estate market. It is, basically, non-existent.

And as the year moves from early Spring to the end of Spring... is the HAM trend ready to move to the next phase?

At the top of this post is the video promo from a realtor for 3243 W. 33rd Avenue. The asking price is $2,480,000 and here is how it is being promoted (click on image to enlarge):

Mackenzie Heights House for Sale! BRAND NEW high-end custom-built house selling now at the well sough after Mackenzie Height area. This is a dream house that comes with high-end Kitchen Aid stainless steel appliances, HRV, air-conditioning, two gas fireplaces, centralvacuum cleaner, crystal chandeliers, electronic door lock, security system with intercom speakers and monitor, jacuzzi tub in master bedroom, granite counter-tops throughout house and granite tiles at the entry foyer. This house comes with just almost everything you need. Possession is AVAILABLE NOW. Open house Saturdays. Will you be this brand new house's FIRST homeowner?

A professional video and coherent write up.

But is there desperation behind the signs by the seller?

A curious craigslist ad has appeared regarding this house - you can click on the image below to enlarge it. (hat tip to Patiently Waiting on Vancouver Condo Info):

It says, in broken english:

"Note: the owner because of a urgent to return China, so the asking price there are a lot of room for negotiation, coupled with the distribution of the total value of 80000 full set of aristocratic furniture, piano, plus on the government’s home purchase cash back, buyers will get a total of nearly 200 000 discounts, which in the vancouver west very expensive premium real estate is very difficult to find such a cheap price, welcome to the OPEN HOUSE to look at the new luxury house just completed! NEAR TO U.B.C!”

Seems odd to have a craigslist posting written like this by a realtor. Is the owner desperate to explore additional advertising options because he is desperate to sell the property?

Let's face it, how many realtors would openly advertise a seller's weak hand and tell you he 'urgently returned to China' and that there is 'lots of room for negotiation?'

Interesting.

It's a good thing a lack of sales and burgeoning inventory doesn't mean housing prices will be coming down, eh?

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