You gotta love the chutzpah of a bubble market.
The video above is for 1490 Balfour Avenue, a mansion in the toney Shaughnessy neighbourhood of Vancouver.
It's 8 bedrooms, 5 bathrooms and 3 half bathrooms. A massive 9,414 square foot house on a 17,827 square foot lot.
The current assessed value of the property is $3.05 million.
So how crazy is the speculation in our market?
Well... in May of 2011 this house was acquired for $2.98 million.
The current assessed value of the property is $3.05 million.
So how crazy is the speculation in our market?
Well... in May of 2011 this house was acquired for $2.98 million.
In January 2012 it was listed for $5.98 million!
(Really? You're trying to flip a home for a $3 million profit?)
In March 2012 the asking price was 'reduced' to $4.88 million.
Recently the asking price was 'reduced' again and the current asking price is $3.988 million. Here is a screenshot of the current listing (click to enlarge):
If it sells for that price, it still amounts to a $1million gross profit in one year. Clearly the buyer was hoping to take advantage of HAM (Hot Asian Money) and the evaporation of that market has cut the bottom out of this buyer's wild expectations.
You have to wonder if the property is marketed as '40% off'?
Such a deal, eh?
Hat tip: gse36
================== You have to wonder if the property is marketed as '40% off'?
Such a deal, eh?
Hat tip: gse36
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Another to look at this: At the listing price of $3.98M, which translated to $434/SF, this mansion is still way below those downtown condo boxes on a $/SF basis. Among the best neighbourhood with large tract of land, vs. character-less boxes in a crowded penisula. Which way will $/SF converge? I am predicing a double whammy of $/SF and absolute price reduction for those boxes.
ReplyDeleteHow about the integrity of all the listing agents involved? The Agent who convinced the buyer of the flip back in May 2011 and the current listing agents who are probably fully aware of the current market conditions.
ReplyDeleteBTW Turn off the Caps Lock next time you describe a place, I hate being yelled at on the internet.
What part of the description is in capitals?
ReplyDeleteOr are you referring to the screenshot of the realtor listing where the realtor has used caps to describe the property?
DeleteAnd for four million you'll get five appliances included! I like how the listing shows the monthly payment. Maybe get a few friends together and....
ReplyDeleteDid you notice all the exposed piping for the sprinkler system? It really detracts from the old world charm. Also see the big red fire bell on the wall and the red fire extinguisher on the wall? Someone is really paranoid about fire.
ReplyDeleteYes the listing is all in caps locks
ReplyDeleteIt is annoying, isn't it?
DeleteNot sure why realtors post like that.
Regrettably all I can do is capture a screen shot because I would change it if I could.