Bailing in BC 20 Aug 2010 12:27 am – “Just got wind of a house that has sold in our neighbourhood. After chasing the market down for well over a year (and dropping the price by $100k) they accepted an offer of $50K under asking price. Approximate drop since it was first listed – 28%”
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- “My folks find themselves at 65 still owing half the value of their home and recreation property to the bank. After almost 30 years of ownership in the BPOE and a number of boom markets, they have very little to show for it.”
- “Rent for $2,200 a month or buy and have a mortgage of $4,310 per month. Why would anyone buy?”
- “They were talking about two couples they knew who had recently bought a lot and planned to each build a house on it and live as neighbours.”
- Greater Vancouver Home Builders’ Association Annual First-Time Buyer Seminar Attendance Plummets
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- The average British Columbian homeowner is not going to pay off their mortgage by the time they retire.
- “He’s sold all his properties except his current one, which is now for sale. He explained that the market’s currently in crash mode, worst that he’s ever seen.”
- “One of my old high school buddies finally got her mother to sell the family home in Kitsilano – sold for over $1M, monies realized after debt paid off $185K.”
- “I know someone who just declared bankruptcy because her condo was assessed at $150k and she bought it presale north of $250k in 2005 or 2006.”
- Sturdy, With Views – “Calling Froogle Scott!… Is Dr. Scott ‘In The House’?” [Not In This One, Certainly]
- “She said the market was dead in Victoria and that it would remain so for a very long time. I asked how she knew. Her answer was fascinating and should scare the pants off the real estate crowd.”
- Kits Notes – “I’m pretty sure that this is the first 3+ bedroom property of any type that I’ve seen in the 5 years I’ve lived here that is priced below $700K.”
- “A beautiful Belfast home, in the equivalent of 1st Shaughnessy, bought at their RE peak in 2007 for £3.5 million, has now sold for £800K, almost 80%-off. The market didn’t suffer any significant economic shocks. Rates & unemployment didn’t skyrocket. They didn’t build more land. Sentiment just changed and the prices fell and fell.”
- “Two family members of hers are trapped, underwater, in condos on the East Side.”
- “Interprovincial migration is not saying good things about BC’s economy.”
- Vancouver RE: Not As Expensive Provided You Don’t Think – “It’s clear that our perception of affordability has been coloured by living on a continent where housing is unusually inexpensive.”
- More Undisclosed RE Industry Insiders Publicized As Clients – “In 1995, Allan and Karin Hoegg were mortgage-free. But no more. Today their Vancouver home is a valuable source of income as they plan for full retirement.”
- Rumor that some OV units will be reduced by 20%.
- Downside Weights On The Vancouver RE Market – “One of the older guys (over 60) mention to the guy beside him that he and his wife were thinking about selling their family home, and renting, in order to get some of the money that was locked up in the house.”
- “My buddy was looking to upgrade to a house in the Coquitlam area. With 200k extra for a home, that’s half of lifetime saving between him and his wife.”
- “I was walking in the Fraser neighborhood yesterday, I noticed that the population, on average, seem to be composed of workers. I belong to the top 5 percent in terms of income. Nevertheless, I cannot afford any of the houses for sale in that neighbourhood.”
- “Vancouver is an urban resort whose value mostly resides in its real estate and not much else.”
- “Rogers Communications is expanding into RE; aiming to relaunch website; providing critical data that can help potential buyers assess the value of a property from the comfort of their home computer.”
- I’m only 50 and I can just about retire if I want to, all because of a single simple decision – “When prices rebounded to their former highs, then rocketed another 30% higher to what I considered to be totally unsustainable levels, I decided that only a fool would pass up a second opportunity to harvest such a massive non-taxable capital gain, and in 2011 I sold my place.”
- The Vacant Lot of Versailles, Richmond.
- “I don’t think that most people think things are going to crash, just that there is going to be a slight correction, but it was amazing to me how sentiment has changed, and the fact Vancouver RE is too high was just understood.”
- “The ‘investor’ who purchased our house put it up for sale two months later, in January 1981, but the bubble had burst.”
- For A City To Have That Kind Of Vacancy, It’s Like Cancer – “Downtown, the vacant unit rate is so high that it’s as though there were 35 towers at 20 storeys apiece – all empty.”
- “What’s the worst that can happen? You can’t pay your mortgage, so sell your house! No fear.”
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At the peak in our area, 1200 sqft ranchers were going for over $500k. The house in question was a 2 storey, almost 1600 sqft and went for $390k
Thanks for the extra info, Bailing in BC.
So this was not just a matter of unrealistic initial ask price.
Not at all. The property was probably 10k-20k over priced to start with and so sat on the market. They followed the price down but never dropped quite aggressively enough to get the job done.
Interesting. My first thought when I see these anecdotes about reductions is that the initial ask price was way out of line, but I’ve seen some similar things in Kelowna.
We sold in the spring and were looking at some homes. Viewed one which was a foreclosure and listed at $550,000. We viewed 5 others within a stones throw that were all priced at 550k-675k so 550k seemed reasonable, and we considered making a lowball offer of about 500k, but the house was taken off the market.
I’m glad we decided to rent – that same house just relisted yesterday for $419,900. It’s 5 years old, 2700 sqft, nicely finished, 5 beds including a 2-bedroom basement suite, and in one of the top neighbourhoods in Kelowna.
I would expect it to sell fast … but I guess I’ll have to wait and see.
I’ll post again when it sells.
I had my realtor look into it right away and it had sold immediately, over asking for $441,000. Apparently, it wasn’t a forced sale – the owners had come up with some cash and sold it on their own.
Thats “only” 16% off of original asking price, but I think that their original asking price was already the best price in the neighbourhood AND they bought 03/Mar/2009 for $580,000!
That’s a 24% decrease in 17 months (the first 12 of which were supposed be months where prices were increasing).
At 441k it sets a new standard for the area, and this has been only sale in the past 4 months. There are 50 listings within a 1km radius, and about 6 are directly comparable. Their prices range from 550k to 675k… for now.