Can’t Sell? Increase The Price By $200K!

3719 W 11th Ave, Point Grey; V853201
2,198 sqft house on 30 x 122 ft lot; Built 1996
Listed 29 Sep 2010; Ask price $1,498,000
Price change 29 Dec 2010; Ask price now $1,698,000
No sale in 3 months, price increased by 13.3%

Up is the new down, people.
What’s going on here?
Trying to attract buyers who demand to pay more? (Not a joke: There seems to be cachet to paying more for less on the westside. Bragging rights?).
Or some kind of weird financing fudging? (We’ve previously seen other properties relisted higher just prior to a sale: Is the financing source possibly more comfortable if the buyer buys at list rather than higher than list?)
The property would still be overvalued at a half of the original price.
Soulless boxes like this one will sell for 650K or less after the crash.
Standard lots will return to 500K and below.

6 responses to “Can’t Sell? Increase The Price By $200K!

  1. Nothing but realtor mind games here, that’s all. There are still plenty of buyers from the “Mainland” who closely monitor Vanc RE prices on a daily basis. The moment they see an uptick (or downtick for that matter) in prices, they jump in head first for fear of losing out to the next panic buyer with a briefcase full of cash and not a clue what to do with it. This has nothing to do with financing. As long as it is a highly sought after “brand name” neighborhood, price is meaningless. Yes, they are a strange bunch who will argue and fight over an additional $0.10 discount on a box of kleenex on the one hand, but prance around in head to toe Prada while lugging around a $2500 LV handbag and trading $1000 Chinese internet stocks on their iPhone 4’s on the other. If prices drop, they buy more. Meanwhile, the rest of the chumps out there continue to wonder why their second or third rate homes aren’t worth X dollars as a result and haven’t gotten a single offer in the last 12 months. The answer is simple. They are only in the market for a top of the line BMW, Mercedes or Range Rover (and not a Dodge or Chevy) and are willing to pay up for it. These cherry picking cash buyers aren’t going anywhere in 2011 either, which is good for those living in the right neighborhoods. Unfortunately, much of the other low to mid range product will continue to pile up, collect dust, grow mold and drain one’s life savings away for the foreseeable future. So, Mark Carney…will he or won’t he in 2011? I say he won’t.

    • Thanks for the comment, bullwhip29.

      We agree Carney may not, but Flaherty might have to (after an election?).

      Suppose prices do start dropping, 10%, 15%, 20%… what effect do you think that will have on the desirability of RE for the set that you are describing?
      You’re suggesting “they buy more”; we’re expecting them to stop buying or even start selling, like other mo’ players.

      • Well, that is the $1.5M (I mean $1.7M…) question. With all the hot money swirling around, it’s really anyone’s guess where the actual tipping point is. Without a doubt, there will be plenty of roadkill as this plays out. That being said, many of these buyers simply won’t sell. Interesting times indeed…

  2. The realtor’s description talks about mountain views. I’m sure that’s true today, but it’s up against a commercial alley, and the day those ancient retail stores get knocked down, you can be sure they’ll be replaced with a 4-story condo (or maybe a 1+4=5 story condo), which will permanently obliterate the view, and eliminate any semblance of privacy in the backyard.

  3. again, the blogger sees the future…”Soulless boxes like this one will sell for 650K or less after the crash. Standard lots will return to 500K and below.”

    • We don’t claim to be psychic, we’re making calls about the way we see the market headed; the most probable outcome based on our analysis. There are other possible outcomes, we’ve discussed them, and the way we weigh probabilities, in other posts. See here, for instance.

      What do you foresee, ‘Fred’?

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