Wanted to take a moment an hilight a post made yesterday over on VREAA.
This is 5575 Elm Street on Vancouver's west side:
The perfect "10" Kerrisdale custom-built home by Loukas Designs with over 5000 sq ft luxury home. Large 50' x 162' lot. East-facing front to greet the morning sun. 10' to 11' ceiling all over, gourmet kitchen with carrera marble countertops, Sub-Zero fridges, Miele D/W, Thermador stainless steel stove, French doors open to huge west-facing gas-heated covered patio w/ built-in BBQ overlooks the blue swimming pool & hot tub. Total of 5 bedrooms, 6 baths, a media room & exercise room. Bsmt offers suite potential for nanny or the in-laws. H/W floors throughout, radiant heat, built-in surround music system and 3 car garage. The fenced backyard is a kid's heaven. Priced to sell.On July 27th, 2012 it was listed for $4,880,000.
On December 9th, 2012 it's asking price was reduced to $3,990,000 and advertised as 'priced to sell.'
Priced to sell? Hardly. It's assessed value is $3,545,000.
As VREAA notes, at 20% off it's original asking price it is still overpriced - particularly in a market where single family homes are now selling at below assessed value.
But it gives you an example of how much further our market has to go.
The first signpost along the path of reckoning in 2013 will be Chinese New Year. This has sort-of become the orgy period of excessive property over-bidding in our market - until last year.
There will be many holding out with expectations that HAM (Hot Asian Money) will be returning in 2013 (we will discuss this more in a future post).
It it doesn't, the sellers will seriously re-evaluate things.
According to a contributor at VREAA (hat tip Canadian Watchdog), this home sold on May 31, 2010 for $3,079,000. It is an example of our speculative frenzy that this purchaser could turn around and ask for $4,880,000 a mere 2.5 years later (an increase of 58%).
I would love to know what this home sold for in 2006 when it was originally built (if anyone knows, please advise and this post will be updated).
I sincerely believe even those with a bearish view of the market will be shocked to see how far values fall to eyes accustomed to 2011/2012 prices.
2013 will be the year many begin to accept that the values established over the past year are not coming back and that to sell, homes will have to be listed below assessed value. As Global TV noted, the price increases of the last decade are long gone.
We will keep our eyes on this property as the New Year moves along.
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