Thursday, November 22, 2012

Did we say -40% below assessed value? Correction... it's now -50% below assessed value.




Located at 1371 Foster Street, Unit #306 was for sale last week with an asking price -47% below it's $228,200 assessed value (last week's asking price $119,000).


Well the asking price has been cut again.

Now it's down to $109,900, a stunning -52% below assessed value with no buyer in site.

As we noted last week, 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 that have sold.

The fact it's not moving is a reflection of the current market, a Lower Mainland market that now has it's first entry in 50% BELOW assessed value club.

(hat tip Observer and Vancouver Price Drop)


Meanwhile on the -30% front

Speaking of the current market, Observer notes we have two more entries in the -30% below assessed value category.

The first is 32913 14TH Ave in Mission which clocks in with an asking price -33% below assessed value:


And the second is #125- 3411 Springfield Dr. in Richmond which now has an asking price -32% below assessed value:




Like rats on a sinking ship, speculators bailing on the west side of Vancouver

Finally Observer shares another fascinating stat which I couldn't resist highlighting.

The west side of Vancouver has long been held as the epicentre of our stunning housing bubble and the  bastion of HAM (Hot Asian Money). Because of this speculators have been buying houses to flip like it was the one day shoe sale at Army/Navy.

But in what is another sign the bubble is bursting in the Lower Mainland, Observer notes that over 20% of listed homes in Shaughnessy right now were purchased just one year ago (this is not including new builds, so the figure is actually higher).

These are speculators desperate to get out and cut their losses.

Profiled is this listing at 1029 Devonshire Crescent, Vancouver:


This home last sold on June 25, 2011 for $2,499,888 .

The current list price is $2,380,000 (assessed value is $2,401,000)

IF the house sold for list price, there would be $125,238 in transaction costs and a $119,888 loss on the sale for a total loss of  $245,126.

So this specker is looking at a quarter million loss and no buyer in sight.

Guess you gotta know when to hold... and know when to fold.

And the speculators on the west side are folding, big time.



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16 comments:

  1. Much as I like reading these, a few houses isn't a trend

    ReplyDelete
    Replies
    1. Oh PLEASE!!! 50% off and no takers?....I don't know if it needs to be a trend when instead it is red lights flashing and alarm bells ringing off the hook.

      Houston..there is no lift-off.

      Who needs a trend? An outlier like this is enough to leave everyone scratching their heads in wonder.

      Is Vancouver officially crazy? When was the last time you heard of a discount this large (or any discounted property) that did not sell.

      You would think realtors would be all over this one trying to get a quick sale.

      Delete
    2. Realtors are all over it, in denial making responses like the one above yours...Black Friday house sales anyone?!?

      Delete
  2. There's also the problem of houses on the Westside that have been listed and then de-listed several times over the past six months.

    I'm not sure if these are speculators that want to get out of the market and can't or people who heard that the market was turning and expedited their existing plans to downsize or move elsewhere.

    I'm expecting these houses to hit the market again come spring. By then the cultural narrative may have shifted to expecting a slide in housing prices.

    ReplyDelete
  3. The rats are bailing now, got to get out before Spring 2013 hits.

    ReplyDelete
  4. I can't believe how many "just a flesh wound" comments pop up. Geez, prices cannot go up for ever, even if people close their eyes and put their hands over their ears..

    ReplyDelete
    Replies
    1. Yeah, I get a real damn belly laugh too whenever somebody tries to say something like "hey, this is just an aberration...it don't mean nuthin at all"....or something along those lines.

      Think back to your dinner parties of this time last year. Everyone was all fat and greasy with the stuffing of their easy equity gains and big sassy outlandish Heloc loans.

      The braggarts carried the show with ease and anyone not invested in housing just hid their sorry faces and slunck away in shame (or disgust) when the meal was finished.

      If even a rumour of a house selling at 50% off was brought up the whole room would have sat in stunned silence.

      Cripes, it is not even a subject anyone wants to talk about this year. Real Estate blather is almost verboten as many lick their wounds and fret over selling or holding and going down with the ship.

      I have a paid off house too but it still turned my stomach listening to all the bullshit these past years as friends of mine foolishly borrowed or bought themselves into insolvency.

      Bunch of idiots.

      Delete
    2. "I have a paid off house too..." So why don't you sell and buy back in around 2015 or so?

      Delete
    3. Money isn't everything to all people.

      Delete
    4. It must be nice to eat hundreds of thousands of dollars and not burp.

      Delete
    5. Beeeelllllcchhhh! Yup. That felt good.

      Delete
  5. @ anon 6:51

    It doesn't indicate a trend but last year you would never see properties listed 30% below assessed value and not selling.

    @ anon 8:48 and others (can't you guys just pick a name?)

    Calling this 50% off is a bit of a stretch, it has an special assessment of over 27% of its assessed value so it's really closer to 25% off, which is more in-line with other properties with desperate sellers.

    ReplyDelete
    Replies
    1. My mistake. I should not have written 50% off. Just got carried away with the moment so I will retract that bit.....

      Shall I just call myself "anon 8:48" in future?

      Anon848

      Delete
  6. I cannot wait for 50%!

    Think of the Pain and Suffering!

    lol

    ReplyDelete
  7. The Teranet index shows a small month over month increase for Vancouver house prices for October. Is anyone suspicious about this? Did they change their methodology since 2008? Similar market conditions in 08-09 seemed to result in a much faster, more dramatic drop in the index.

    ReplyDelete
  8. This is starting to happen all over greater Vancouver - assignments coming on market. 'All the best locations'. As noted on an earlier blog on this site this is why projects are sold out so fast. Imagine owning one of these 40 units in Coquitlam - all coming due Spring 2013. Multiply this with all the projects in similar circumstances and you have a massive meltdown.
    CJM

    "Foster by Mosaic. The building will be ready for occupancy approx Spring2013. We have 40 other units for sale by assignment, all of our units are first pick - meaning the best locations and best lay out".

    ReplyDelete