Monthly Archives: February 2009

“The 493K will not happen in my lifetime” – “Nobody wants them yet they will still sell for minimum 500K.”

Some are frantically calling the bottom in the Vancouver RE market, in word or in deed. This from eyesthebye on 2009 Feb Wed 25, 6:05pm & 10:21pm who seems to believe that the market can’t possibly deteriorate further from here -

“He’s saying the price of a single detached in Vancouver should be 493,000? I just bought a place – a character 1 and half story at over 600K and I had to line up for it – in fact, every decent home I looked at was sold in the first week for high 500’s to 700K. I’ve even see substandard locations sell for 500K in the first day offered. If you’re in the market for a single detached expect to pay 600K for a decent place. The 493K will not happen in my lifetime.”

“Buying a decent house in Vancouver for under 500K is a pipe dream. Trust me, I’ve just been through it – searched for a HOUSE for six months and every time there was a decent 1.5 or 2 storey character house for under 700K it was gone. Go look for yourselves – mls is littered with Vancouver specials and bungalows – nobody wants them yet they will still sell for minimum 500K. Anyone who doesn’t believe this can continue to live in their rented apartment or owned condo”

UPDATE: The above poster later revealed “I have a construction trade too…this is not a secret.” (RE Talks 11 Dec 2009 4:31 pm)

“I’m 79 years young … I should have known better with all these years of experience.”

This is a second anecdote from the article by Kerry Gold in the  Globe and Mail, February 19, 2009 -

“Lou Skoda and his wife Donna purchased their two-bedroom Port Moody apartment in Onni’s Aria 2 building in September, 2007, for $456,000.

However, a year later, when they tried to sell their smaller condo unit to finance the purchase, the market had collapsed. Mr. Skoda, 79, a retired cartographer, lives on a fixed income and couldn’t obtain a mortgage to finance the Onni condo. He attempted to renegotiate with the developer, he says, but was turned down. By January, he learned that his new condo would be sold for 25-per-cent less as part of a liquidation sale of 375 units. Mr. Skoda offered to buy the condo for the reduced price, but was offered a 6-per-cent discount instead. Onni is now suing Mr. Skoda for backing out of the deal, which means the Skodas could lose their $68,350 deposit and be stuck for damages such as the loss in property value.

“We bought at the height of the real-estate-market wave and we were trying to sell when the real estate went through the floor kind of thing,” says Mr. Skoda. “We definitely didn’t see this coming, so we signed on the dotted line. Of course, we made a decision without consulting with a lawyer, which my lawyer now tells me was a dumb thing to do, and I agree.

“I’m 79 years young … I should have known better with all these years of experience.”

“The market changed so quickly, no one could anticipate it.”

This from an article by Kerry Gold in the  Globe and Mail, February 19, 2009 -

“Computer programmer Riaz Kassam purchased a two-level penthouse in the trendy Yaletown district of downtown Vancouver last June for $1.5-million, with a down payment of $80,000. Compared to comparable units, the H + H unit should have been priced at $1.6-million, so Mr. Kassam thought he was getting a bargain. By the time the condo was completed earlier this year, Mr. Kassam was shocked to see it appraised at $1.2-million. In order to close the deal, he says his bank requires that he pay a bigger down payment of 25 per cent. However, his current condo has also dropped by more than $170,000 in value, which has made that impossible. Mr. Kassam says the developer is now threatening to sue.

“We even asked our broker to get third-party funding for us, with 10 or 12-per-cent interest – but no one is willing to do that because they need equity,” he says. “The market changed so quickly, no one could anticipate it.”

“The cycle will come back but I don’t want to wait until it gets better.”

Lynn Harrison has lost her job twice now in the boom-bust home building industry. This time, she’s getting out for good. The former marketing manager at British Columbia’s Vesta Properties Ltd. was laid off as the slump in the residential construction sector took hold late last year. She lost a job the first time during the 2000-2001 downturn, and now she’s looking for a senior marketing position in a completely different industry. “The cycle will come back but I don’t want to wait until it gets better,” said Ms. Harrison, who was laid off in December at Vesta, which is based in the Vancouver suburb of Langley. “No one wants to build a bunch of homes no one wants to buy. There are just times when you have to cut people.” Ms. Harrison was part one of the greatest job creation booms that drove employment in the sector to 1.2 million from about 800,000 at the beginning of the decade. And now she’s among those leaving as construction plummets.”

“Damn Those Pumpers!”

Regrets from Waitingtobuy99 at RETalks on 2009 Feb Tue 17, 11:23 am -

“We (young business professionals) bought in 06 and thought oh, it’s never coming down; we sold our 700sq/ft condo and lost a lot of our down payment. Damn those pumpers! It’s not the older generation who are getting screwed here, its the first time home buyers in the past 2-3 years. They (pumpers) should be on trial for some kind of conspiracy.”

“That’s GOTTA’ hurt.”

Report on a telling sale from thinktom at RETalks 2009 Feb Mon 16, 2:20 pm -

“Unit 2701 at 1455 Howe. Purchased Feb 1, 08 for $1m even. Just sold for…. $725k. That’s GOTTA’ hurt.”

“I guess paying close to a half a million bucks for 720 square foot condo doesn’t seem like such a great “investment” now.”

Are we already back to 2005 price levels for some Vancouver RE? This from meeeeeep on RETalks on 2009 Feb Sun 15, 6:36 pm -

“1201-1005 Beach Avenue (the Alvar) just sold for $375K after 28 DOM. In 2005, the going price was $350K for the same unit on a lower floor. 501 sold for $345K in Oct. 2005 and 601 sold for $352K in Dec. 2005. In May 2007 one of these units (1601) sold for $438K. Considering current interest rates, it is astonishing how fast the price has fallen. I guess paying close to a half a million bucks for 720 square foot condo doesn’t seem like such a great “investment” now.”