Denman Island; west-facing waterfront restored character house on 1 acre; listed 2007 for $1.5M; sold recently for $665K
From Vancouver Sun 20 Jan 2011 -
“A sharp drop in demand for B.C.’s high-end rural waterfront properties has resulted in price reductions that in some cases are substantial.”
“Rich Albertans and other wealthy buyers who traditionally bought up B.C.’s recreational properties are increasingly looking south to places like Arizona and Nevada, where prices are often much lower following the U.S. real estate meltdown.”
“People are definitely looking south.”
Having a second house is like having a second wife: it seems like a good idea in theory, but the maintenance is unbelievable.
Second laugh of the week for me! thanks for that. Or wait, maybe it’s the third, if you count Garth’s “Surprise” blog entry header pic.
Well at that rate in five years I can buy my retirement home.
A quick note on the Vancouver Sun story. Price increase/decrease should not be measured in terms of listed price vs. sold price. Just because houses are selling way bellow their listing price does not mean prices in that area are coming down. Price increase/decrease should consider buy price vs. sell price. For instance, let’s imagine I buy a $500,000 house and a year later I list it for $1,000,000 but end up selling it for “only” $750,000. That would suggest that my initial listing price was insane but also that house prices are still going up. Teranet/National Bank house price index shows prices are coming down but at a slower pace.
good point
This was the argument many were using in high end areas of California when things peaked there. Price paid above list (or below list), used consistently, is a real measure. This is a market of expectations, after all. We are a long way out of rational return on investment territory, so something has to be driving it.
The real issue with concluding anything is it’s just a few hand-picked examples.
On the other hand, humans respond to examples, so this will have an impact on sentiment, if widely read.
Agreed that only Case/Shiller and Teranet really reflect price changes accurately.
Ask prices are unreliable as some sellers attempt hail-Mary passes.
But, as AG Sage suggests, expectations/psychology comes into play, so these examples are of interest.
A little off topic: this house looks like it is of fair size (2400sqft? more?).
If you had the land in Vancouver, what would it cost to build such a house here? It looks basic quality build, so probably $175-$200/sqft? Is that right?
That would be the range. Cost per square foot is somewhat higher in the core of Metro Vancouver, but not that much higher than other parts of BC.
Butterfield Development Consultants has an online construction cost calculator that allows you to play with different variables including level of quality and location in BC. bdconsultants dot com
I’d put this Denman Island house in the 3000 square foot range, build quality perhaps medium. So it would probably cost about $550K to build in Vancouver, in addition to the cost of the land.
Thanks for the link, Froogle.
Their estimates are probably a little low.
For example: ‘High’ end >2500sqft build with basement in east- or west-side is quoted as about $198/sqft.
Further: Wouldn’t one expect construction costs to be more on a Gulf Island? Distance from material sources, labour sources, ferry costs, etc.
This is just the start of a total collapse – as stupid morons poured money into crappy little islands just off Gangcouver, the property crime, money laundering capitol of the world.
They all will get what they deserve.
Dog kibble for dinner and living on the street.
Greedy, stupid, boneheads.
I laugh in their fat faces and hope they all rot.
That is what their greed and generational blindness gets them. Unfortunately the taxpayers will wind up paying to support the criminal stupidity of CMHC and that thug Flat head Flaherty.
Idiots.