We suspect that ‘stealth inventory’ is building. Prospective sellers are waiting in the wings… for various reasons… and precisely when and how and in what number they descend on the market will shape the action over the next year. Here’s the story of a seller who suspects his own hope is irrational. -vreaa
real_professional at vancouvercondo.info November 1st, 2010 at 5:14 pm – “On Friday I met a good friend of mine for a pint. Just to let you know, he is a home owner, really smart, and he and his wife have great jobs.
Approximately three years ago they purchased a condo in a nice area of the lower-mainland. He purchased it for approximately $340k and attempted to first sell it on his own (sans realtor) and reduced the price by approximately 20k as he attempted to attract buyers.
He threw in the towel and hired a realtor who didn’t do much better. Moreover the realtor, walked the price down by another 20k without a sale. Now let me be clear, I have been to his condo and it is nice, the only reason they are moving is because they need more space – no defects in his place what-so-ever.
Well it turns out that the realtor finally said that despite his inability to move it – it could move for around 270k (a 20% reduction from their purchase price). But instead of enduring another $30k of price cuts he decided to take it off the market and rent it out while he lives on rent elsewhere.
As I said earlier this guy is no dummy – he fully understands that his decision not to sell is based on emotions regarding his unwillingness to realize the loss – yet, he clearly doesn’t see any upside in the Vancouver market.
I feel sorry for him, but he is young and well paid so he should be fine. The other idiots with the $500k mortgage, the lower wages, and the inflated egos won’t be able to endure the cash burn.”