Thursday, September 23, 2010

Developer says consumers being misled about strength of housing market!

Stunning little news article in the Peach Arch News, a Surrey community newspaper.

In a statement issued by Watermark Developments, the South Surrey developer says consumers are being misled to believe the housing market is stronger than it really is.

Watermark Developments is currently in the midst of offloading unsold inventory at below-market prices. “In contrast to this situation, which is clearly indicative of a sagging market, realtors... are blogging about how ‘hot’ the market is,” reads a statement issued on Monday by Watermark's hired realtor Salome Sallehy.

“Some realtors are putting the wrong perception out there,” Sallehy explained. “Inventory is just not moving because the market isn’t willing to bear those prices. Developers aren’t really acknowledging that.”

Sallehy comments come a couple of days before Watermark starts offering 37 units for sale on Saturday at prices that are 35% below what the units were sold for during pre-sales in 2006.

Yes... you read that correctly - 35% BELOW 2006 pre-sale prices.

All this on a day when I stood out in the rain at UBC and listened to a Scottish acquaintance of mine (we'll call him James) laugh at me for predicting a bursting housing bubble in Vancouver.

"Real Estate never goes down," he guffawed at me.

I shrugged and told him I was adamant about my belief and was putting myself out there for ridicule if five years from now I was proven wrong.

"Out there? You're putting your head on the chopping block, you know that," James chortled.

Guess he won't be taking me up on my advice to sell at least one of the two homes he owns so that he can cash out on his equity while he can.



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1 comment:

  1. Wow 35% below 2006 prices, that left me stunned. A prelude of things to come.