mousey at greaterfool.ca 18 Feb 2011 1:07am – “I noticed a double lot property listed on the MLS in the “hot hot hot” Cambie area of Vancouver. It had heritage features and was not obviously a knock down. It was priced at just under 1 million which is about $300,000 less than that knockdown on a regular lot in the same area that sold about 2 weeks ago. Had to phone the real estate agent and ask what was wrong with the property. The agent said there was nothing wrong with the property and that it had been listed for about 1.5 million just recently. The plan was to sell it in one day and that they expected to receive 20 or 30 offers right away. There was no expectation that it would go for 1 million. The price looked wrong right off the bat, but I felt bad for the young families who might have actually thought that the asking price really was the 1 million as opposed to the opening bid price in a land auction.
Further, a house down the street that couldn’t sell for about 1.2 million last fall is now back on the market as priced to sell for just over $1.3 million. There is something truly wacky about our little jewel on the coast. The lattes must be spiked, I swear.”
We would always expect realtors to be using whatever strategies it takes to sell properties, regardless of market conditions. Currently, however, there are perhaps an unusually large number of stories of strategies designed to manipulate buyer psychology. Helicopters, Paid for line ups, Media coverage, Deadline pamphlets, ‘Land auction’ pricing. It seems we have a narrowing market with hot and cold patches. This could be a ‘distribution top’ pattern, where smart money and insiders are unloading and market darlings show a last hurrah. All against a turbulent and frantic circus-like backdrop. -vreaa