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

Last week we told you about a White Rock condo that had breached the 40% below assessed value mark.

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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Email: village_whisperer@live.ca
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Wed Post #1: We now have a property being offered for more than 40% below assessed value.

Last week, in one of our posts, we made note of how it was becoming common to see listings where the asking prices on properties was over 30% below assessed value.

We asked, "how much longer until we have a property priced or selling 40% below assessed value?"

Naturally it is Observer (and his excellent blog Vancouver Price Drop) who serves up the first one for  us.

This is an apartment block in White Rock at 1371 Foster Street.

Unit #306 is for sale with the following description:

2 bed, 2 bath top floor unit in the heart of White Rock. This unit boasts a large master bedroom, walk thru closet, lots of storage and an Ocean View. Great extra’s such as in suite laundry, updated kitchen, fresh paint, attractive crown mouldings and large balcony with ocean views. Walking distance to shopping dining and the beach, no rentals, 19 plus and pets allowed with restrictions.

Assessed value? $228,200.

Current asking price? $119,900.

That's a stunning 47% below current assessed value.

Now it must be noted that 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 and it is a reflection of the current market that even with an asking price almost 50% below assessed value, there are no takers.

Hovering near this 40% below assessed value level is a unit in this White Rock complex at 15369 Thrift Avenue:

Unit #206 is described as:

a freehold unit in the heart of White Rock, just steps to new town developments, shops, restaurants, library, hospital and beach! The unit has been totally updated and looks/feels like new. Wellmaintained complex with new roof, pet friendly and free laundry! Low maintenance fee includes heat and hot water. Live near the beach in this prestigious location for way less than the assessed value!

Assessed value: $140,800.

Current asking price: $89,000.

That's an asking price 37% below assessed value... and there's no looming strata repair bill hanging over the purchaser's head.

Right now many homeowner's, instead of heeding advice to aggressively cut asking prices, are pulling their homes off the market for winter to re-list in the Spring. They are doing this in the hope of a post-winter market resurgence.

Meanwhile other homeowners are in the process of aggressively slashing asking prices.

Will those who choose to wait, come back in Spring to a market that is even in worse shape than it is now?

We have one property (that we have come across) that is more than 40% below assessed value and many others in the +30% range.

It will be interesting to compare those numbers with levels in the Spring.

If you come across other properties 40% below assessed value, let us know and we will profile them.

At the start of the year people laughed at the concept that we would see ANY properties 10% or greater below assessed value. And now we are talking about some being 40% below assessed value.

Was it really only as recently as June 8th of this year when speculating on drops of 30% was dismissed as something out of the Twilight Zone?

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Email: village_whisperer@live.ca
Click 'comments' below to contribute to this post.

Please read disclaimer at bottom of blog.