The Periphery Is Imploding – Penticton, Kelowna, Whistler, Sunshine Coast – “Priced more than 40% below what was paid in 2002.”

Penticton, Kelowna, Whistler, Sunshine Coast… Some RE bubbles start from a centre and move concentrically outwards, and when they implode the reverse happens. Our epicentre is perhaps Vancouver Westside detached. Many of these ‘peripheral’ properties are, of course, owned by people from Greater Vancouver.  -vreaa

Penticton (greaterfool.ca 24 Aug 2010) – “A year ago a guy bought a sub-penthouse in a sub-interesting condo in Penticton, a BC resort town, and paid $1,300,000. On Saturday a mess of people showed up at the same building, and the same suite was sold at auction for $685,000. “Interestingly,” said someone with family at the event, “a number of people thought the prices were still a little high.”

Whistler (cfl122 at RE Talks 22 Aug 2010 7:22pm) – “I was talking to a few hockey parents and they told me that they had recently bought in Whistler. One parent purchased a condo in the Four Season Hotel for less than $250k from a seller who had purchased that condo for more than $600k. Another bought a townhouse for less than half the original listed price.” (Realtor link confirms, sold for $250K: “Court ordered sale: Suite 507 is a 645 king suite with 5 piece luxury, spa-like bath. Phase 2 nightly rental luxury 5 star property with all amenities the discerning buyer deserves. Priced more than 40% below what was paid in 2002.”)

Kelowna to Osoyoos (McLovin at vancouvercondo.info 29 Aug 2010 9.17am)- “I just returned from my second week this summer in beautiful Osoyoos. The family and friends all had an amazing time but talk about dead. We have been going there for 5 summers and I have never seen virtually every hotel on “hotel row” with vacancy on a Sat night. I don’t know if people are traveling less or the “Alberta oil money” has stopped flowing but it was dead. Chatting with an owner of a 15 unit building I learned that Pentiction is hurting so much that hotel prices in some places are down 50%. I did my usual drive around and noticed even more inventory and a bunch of “new price” signs. There were even two projects offering “blow out pricing” The entire area from Kelowna to Osoyoos has gone no bid. There are simply no buyers at virtually any price and inventory keeps grinding higher. There is a waterfront place that we considered buying as a group in 2008. The owner had it listed at $1.3M but we were told by another [realtor] to offer $1.1M. We did the math and decided that it was just way too much for a place we would use collectively 14 weeks a year especially in light of the fact one can rent a similar place for $3,000 per week and give back the keys (like we just did) Anyway, last summer the price had dropped to $1.0M and we were told by the [realtor] that the owner of the empty house had turned down two offers for $950K. This spring (after it had been on the market for two years) the price was dropped to $900K. The price was dropped Aug 1 of this year to $829K (from $1.3M) and still no buyers! That has to put a chill into the retirement plans of many a boomer who bought there in 1982 for $67,000 and plans on listing it for $1.2M! The reality of the pricing has set in and people are realizing that the prices have just gone past the ability for even groups of people to pay for a 1980’s vacation home. In my opinion after watching prices there since 2005, from the peak in 2007 prices are down (unofficially of course as there are ZERO sales) 20-25% and show an increasing trend downwards. There are many projects that were built since 2007 such as Walnut Beach where every buyer is underwater big time. The whole of the Okanagan dropped in 2008 like Vancouver but did not bounce back at all.”

Sunshine Coast (rebgv.org Aug 2010 data) – Detached sales price benchmark down 14% in one month (260.4 Jul 2010; 223.9 Aug 2010)

One response to “The Periphery Is Imploding – Penticton, Kelowna, Whistler, Sunshine Coast – “Priced more than 40% below what was paid in 2002.”

  1. 1.3 = 1.3 thousand?
    [thanks….edited. -ed.]

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