Same Property Sale/Resale Price Drops

Example 1:

“Land Value Property for sale – 5038 Arbutus Street [V955311; 52×108 lot; Quilchena area of Westside]– listed for $998,000 now 13.2% below last sale price of $1.15 million on April 15, 2011- assessed value is $1,227,900.
This is where you will see the 1st cracks in the Westside housing market – big lot on busy street in Westside. In a few years, this lot will be worth $300,000+. Is this a speculator who is bailing, perhaps someone who put 5% down last year, never made a payment and is walking away? It definitely sounds like a foreclosure but I have not confirmed that. Is this the Canary in the Coal Mine?”

airborne canine at VCI 19 Jun 2012 10:53am

Regarding 5038 Arbutus. Listing agent is one of the owners.
Should know soon how their Offer Party on June 18 went.
Definitely priced below “market” to get the buyer in. Should sell for over asking based on current market. Still – this is a big loss in 12 months. Could be $200,000 after all costs and taxes are factored in.

ZRH2YVR at VCI 19 Jun 2012 at 11:26am

Example 2:

“59 West 21st. Livable house
Paid $1.303M. May 2011
Sold $1.281M Jun 2012.”

BubbleBoy at VREAA 19 Jun 2012, quoting gse36 at RE Talks 18 Jun 2012 10:33am

“Confirmed – was a failed flip at 1.49M asking.
Seller is a relative of the Listing Realtor that sold.”

zrh2yvr at VREAA 19 Jun 2012 6:38am

19 responses to “Same Property Sale/Resale Price Drops

  1. The lowball asking prices are still happening, where they expect multiple bids and a sale over assessed value. No way they’ll let it go for what they’re asking. Although I have a friend who sold their home in Surrey recently. Agent told them to price it $10,000 below “market value” and expected a bidding war. They ended up selling another $10,000 below the asking. Oops!

  2. homelessindunbar

    5038 Arbutus is now listed at $1.38m….

  3. 4SlicesofCheese

    Not SFH, but was at my parents place last week, he told me one of his coworkers is selling his assignment at 2300 Kingsway and asked me I was interested.

    I live right by the condo being built now and I know there are still units left so why would I buy an assignment from this guy, but just out of curiosity, when I got home I googled assignment 2300 Kingsway and I found 13 assignments for sale. Some with the exact same units undercutting each others prices.

    1007 – 2300 Kingsway, Vancouver (Vancouver East) Interested in this listing? Contact Rennie
    Share This | Add To Favorites
    $399,000 | 2 bed | 699 sf

    1207 – 2300 Kingsway, Vancouver (Vancouver East) Interested in this listing? Contact Rennie
    Share This | Add To Favorites
    $385,000 | 2 bed | 699 sf

    The building should be completed soon and I expect many more units to come on the market, look at Cosmo, there were a few assignments before completion but now that it is completed, there are 30+ units for sale.

    Probably not counting all the people that are renting it out for abit until prices start going up again. Good Luck.

  4. So interesting biking through White Rock the other day. Even if I wasn’t an ardent bear, it would have been hard to miss the sheer number of For Sale sings. I have no idea if the official totals reflect it, but there sure seems like a ton of them when you’re on the street, sometimes several in the same block. Three or four carried the “New Price” message.

    But on top of that, the flood of new product and new developments just…doesn’t…stop. We rode past at least a half-dozen new condo/townhouse/SFH developments that day alone. Meanwhile, back here in my own between-the-border-crossing neighbourhood, construction continues unabated. They’ve opened up a whole new section of land since my photo essay a couple months ago (building roads, infrastructure, etc) that looks big enough to handle a hundred townhouses and dozens of row houses.

    You gotta remember that there are already 90 (!!!!) listings just in this mini-neighbourhood alone, nearly all of which are new. And unloved, apparently. These places were being snapped up a year ago, but not now. The weekend open houses here are seemingly drawing nothing but flies.

    There’s one house in particular that bears mentioning. It’s situated where prospective buyers can’t miss it when they drive into the area, and it’s been in a constant state of “open house” for the last two months. Yet there it sits today, un-purchased, while dozens more just like it are nearing the final stages of completion.

    Honestly, who the hell do they think will buy this stuff at these prices? Especially when so much more is being readied every single week? “Overbuilt” doesn’t begin to describe it.

  5. 59 w 21 ave:

    Bought last year,
    List 1,098,000
    Sold 1,303,000

    See what happens when you out bid people?
    Getting into bidding wars is not the way to buy. It usually means trouble. The lowball days are on the horizon. Be patient. 😃

  6. 2bdr at 699sq ft. What is this? Tokyo?
    What kind of rats enjoy living in such a cage?

  7. These cases are an example of how flippers who seemed to do so well in the bubble can get creamed by holding just one last property in the downturn. Even if the flippers in that first example have been turning over properties for five or six years, living the high life, do you think they have an extra $200k laying around to lose? Unlikely.

    In the second example, they lost $22k in a year, plus transaction and carrying costs. If we’re generous and say these flippers are well-to-do with a real income of $120k per year, they just lost what, 30% of a year’s income?

    • The loss is more than $22k. 1 year of interest payments, properly transfer tax, legal fees x2,property taxes, and realtor fees (if any). This loss is likely as little as $40k -$75k.

  8. My friend was working on the sales of 2300 kingsway for the presale. At the time he offered me a 1 bdr unit 521 sq/ft for $244k. He then tried to flip the assignment on the MLS at a price of $299k. After 6 months of no interest, he’s going to rent it out.

    • Good luck with anyone that bought in 2300 kingsway. expect nightmare tenants as the places are too small to get good quality tenants. lots of investors /flipper will regret buying there.

  9. http://www.vancouversun.com/news/Coming+rains+could+Fraser+River+flood+threat/6808145/story.html

    this story is primarily about the flood in Prince George, but check out the photograph of the flooded house with a Sold ‘for sale’ sign.

  10. Yowza!

    Stick a fork in ‘er… she’s done.

    Mortgage rules to be tightened further by Ottawa:

    http://www.cbc.ca/news/business/story/2012/06/20/mortgage-rules-tightened.html

    “Under the new rules, mortgages amortized over a period longer than 25 years will no longer qualify for that insurance, making it effectively impossible to get a highly leveraged mortgage of more than 25 years in Canada.

    The announcement marks the fourth time in four years that the government has clamped down on mortgage rules. It first moved in 2008 by cutting the maximum amortization period to 35 years from 40 and requiring a minimum down payment of five per cent.”

  11. 3560 BARMOND AVE RICHMOND
    Assessed $1,029,700
    Sold Feb 17, 2011 for $1,168,000
    Listed some time before March, 2012 for $1,260,000
    Reduced June 2, 2012 to $950,000

    Still on market… If sold at current ask it would be a $218K loss plus figure about 90K in realtor / transfer / legal fees

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