“In Richmond, there is a high probability of a price decline for detached homes in excess of 30%.”
“Sellers who need to sell will have to cut their prices more deeply to attract buyers. This could be the beginning of a real estate down cycle. The momentum will pick up when more sellers realize that a real estate downturn is in motion.”
“The cascading effect of declining home prices will snowball, causing more home sellers to sell before home prices drop further… The in-balance in supply and demand is massive for million dollar homes in Richmond. A price collapse in Richmond detached homes looks inevitable!”
- James Wong, Richmond Realtor, Monthly report, as cited and discussed by ‘The Village Whisperer’ in the article ‘Richmond realtor warns:”price declines in excess of 30% coming, price collapse looks inevitable!”, at Whispers From The Village On The Edge Of The Rainforest, 9 Aug 2012. Read Whisperer’s whole discussion. Headlined here for the chronological record.
Needless to say, we agree (but believe that ultimate price drops will be >50% from peak).
It is of interest that a realtor is voicing these opinions, and advertising the notion that “price drops will beget price drops”. This will likely stir sentiment.
- vreaa
James Wong will be Richmond’s Peter Schiff
D’ya think he made the… ‘Wong Call’?….
Yes.
I met this realtor 1.5 yrs ago. I asked if he thought prices would come down. He said very confidently that it’s never coming down. All the chinese demand will keep prices high.
Market condition can turn on a dime!! You need to react to what’s really going on in the current markets. If the HAM kept coming, we would see more stable pricing.
“Housing Sales Plummet”
http://www.thenownews.com/index.html
Front page of today’s Coquitlam Now, both online and in print.
And no, I did not write it.
I like Pavlov’s paraphrased opinion that “singlefamily properties would always hold their value to some extent because usable land in the Lower Mainland is limited.”
http://picardfacepalm.com/picard-facepalm.jpg
Not to say Pavlov is incorrect here, only that the statement is going to be misinterpreted as a reason to overpay for “singlefamily”.
Better link to the story in The Coquitlam Now, not just the main portal of the paper. http://tinyurl.com/8cfq6br
Today on CBC-Unemployment Rates- (Vancouver) have risen from June’s 6.4% to July 6.8%. China’s growth engine is grinding to a halt.
People are selling off toys, forgoing luxury items, changing eating habits, staying home more.
Conclusion derived in the USA, Motivated sellers.
Jobs go away and people are forced to sell homes establishing a new downward priceing trend.
It’s always interesting to watch the momentum, though.
When you keep an eye on this type of stuff, you’re just inherently more conservative. However, I have all sorts of friends who either see it coming and are all damn-the-torpedoes about it; or don’t have a clue and are just business-as-usual.
It’s time to hunker down, and yet so many people still have their necks exposed.
Apt description. Poker game with the nanny state. They’ve got players sitting with too much owing to pull out of the game, confident the dealer’s a good guy and wants them to play a little longer.
Don’t worry, folks. Canada’s economy is “second-to-none”. Or not.
http://business.financialpost.com/2012/08/10/canada-surprises-with-big-job-losses-in-july/
http://www.vancouversun.com/business/sees+sharp+employment+decline+July+Statistics+Canada/7073431/story.html
“A life spent constantly stressing out over a dead-end job or struggling to pay off a fixed 30-year mortgage on a continuously depreciating three-bedroom townhouse? It’s horrific.”
http://tinyurl.com/bvsas7u
I laughed. I cried.
@EG
Yup hunker down and read up on the stock home syndrome.
Don’t worry, prices in Vancouver are just going to stabilize maybe drop a little, they are not going to crash. You won’t see a crash here in Vancouver unless there are large job losses. So no need to panic.
http://www.huffingtonpost.ca/2012/08/10/unemployment-rate-bc_n_1764918.html
uh oh….BC accounted for half of Canada’s job losses! Yikes
Copper is the commodity that fuels much of British Columbia growth
http://blog.kimblechartingsolutions.com/wp-content/uploads/2012/08/joefridaycoppervulnerabletoadeclineaug10.gif
Everything’s rosy at VanCity CU. Transfer money to a different institution and they will phone you personally to ask why. WTF
Someone is tight on capital requirements.
They may like the stability and price of deposit funding: but funding it remains. Deposits are the furthest thing from capital.
it’s going to be epic lol
* highfive *