Realtor Opinion – “Prices are actually quite stable and have only increased modestly in value in the last year or two. Given immigration predictions, low interest rates and the fact that Vancouver has become an urban resort to the world’s wealthy, there doesn’t really appear to be as much froth as one would think.”

“As a Vancouver real estate agent I share the disbelief at the bizzaro real estate pricing we see so often here. This practice of re-listing at a higher price than a previous, unsuccessful listing is nothing new to Vancouver real estate. Last year I watched a “star” realtor list a $3.5MM condo for $8MM. Not surprisingly the listing was unsuccessful and the property remains unsold and off the market. Vancouver has managed to buck global real estate trends, however, it’s important to remember that sale prices, not list prices are indicative of the presence or absence of a bubble. The motivation for an agent to list a property at twice its justifiable market value is debatable but it does happen regularly. Many agents and sellers are pinning their hopes on the recent influx of Chinese buyers. Regardless, these tactics are not effective and do not necessarily point to a bubble. The reality of our real estate market is that prices are actually quite stable and have only increased modestly in value in the last year or two. Given immigration predictions, low interest rates and the fact that Vancouver has become an urban resort to the world’s wealthy, there doesn’t really appear to be as much froth as one would think.”
– comment from shaunkimmins at Global Economic Analysis 20 Nov 2011

19 responses to “Realtor Opinion – “Prices are actually quite stable and have only increased modestly in value in the last year or two. Given immigration predictions, low interest rates and the fact that Vancouver has become an urban resort to the world’s wealthy, there doesn’t really appear to be as much froth as one would think.”

  1. Realtroll

  2. These pretzels are making me thirsty.

    Nothing new here..
    Typical response from a realtor.
    Interesting to note that the tone has mellowed down a bit.
    Sign of things to come???

  3. 4SlicesofCheese

    A flat market would actually be a big issue for alot of buyers.
    In the US even a flat market would have caused a collapse.

    The reason? Everyone is buying based on a 7-8%(that’s a modest assumption in most peoples mind I think) appreciation model.

    Take away the appreciation and buyers will slow down. It has already started especially in condos, I think thats why we see developers undercutting resale prices with their low presale offerings.

    How long the general public catch on that annual appreciation has disappeared is the main question

    • “A flat market would actually be a big issue for a lot of buyers.”

      We agree completely.
      All it’s going to take for the market to crash is for it to stop going up.
      [Sounds circular, but it isn’t.]

  4. Renters Revenge

    I keep saying this over and over again too; A flat market will be all it takes to start the downward tailspin. Nothing in the lower mainland cash flows positive and the ONLY logic to buy in this environment is an assumption of appreciating values. As soon as it sinks in that prices are no longer rising, on a consistent basis, look out below!

  5. Vreaa, 604serf posted a comment on VCI that is worth noticing.

    The financial post wrote an article “‘Mingles’ moving housing markets” about single people not waiting for marriage before buying a place. In this article, they take the example of Melissa Yan:

    “Melissa Yan wondered why she had to wait until she got married to buy a home.

    She decided she didn’t. So the 28-year-old, who works in marketing, opted to jump into Vancouver’s hot housing market at Christmas in 2010.”
    http://business.financialpost.com/2011/11/19/mingles-moving-housing-markets/

    Well, it turns out that Melissa’s Marketing work is actually directly related to RE marketing…

    From her public LinkedIn profile:
    “Manage strategic real estate project marketing programs for clients. Responsible for marketing strategy, public relations, forecasting, budgeting, lead generation, event planning, media buying and negotiations. Initiate and manage strategy and direction with graphic and interior designers for marketing collateral, sales centers and show suites.”

    http://ca.linkedin.com/pub/melissa-yan/10/241/22

    I don’t know of we should be outraged, disgusted, sarcastic or amused by such an article… I just want to point out that FP just loss all its little remaining credibility it had in my mind for not disclosing such “details”.

    • I think it’s fair to have all of those emotions about all this.
      Thanks, will headline.

    • The National Post was the worst of the Canwest/Global crap-paers. Opinions masquerading as news and analysis.

      No shock that they left out the most important part of the story.

    • “It’s a home, it’s an investment — a bit of both.”

      “I figured I would invest in an asset for now. I know it’s not my final home”

      Melissa obviously studied quantum mechanics enough to understand the concept of duality. I’d like to believe nuance but confusion seems more likely.

  6. Market is not flat. I do think condos have fared worse than the headline-grabbing sales in parts of tony areas of the region.

  7. And from the same comment section, this one just got in:

    “Vancouver is bordered by Mountains, Water, and the U.S. Border. Similar to Manhatten, it’s physical boundaries cannot be expanded.
    Believe it or not, there is a lot of pent up demand, but it’s been waiting for a price drop for a decade. The market prices are out of whack with Real Estate around the world, and I think there is little value in Vancouver in comparison to other cities. But the population continues to keep growing and growing. I’m not making any predictions, but I watch with fascination.”

    Same old…

  8. Where does that realtor work? Looking him up in google shows that he takes pride in focusing on Coal Harbour. Now… how’s CH doing? That area is exactly as he describes. Flattish and a playground for the World’s elite who pay a lot to look at the mountains and not have any direct sunlight. Of course, they are only there a few months a year…

    • world’s elite? Vancouver LOL yeah ok!, what nonsense. I don’t live there anymore but not a soul I have met has any interest in going to vancouver, NYC LA, anywhere in Europe, Tokyo sure. Outside of vancouver people barely know where it is

  9. The anecdore about the 6 mill, listed for 17 mill, now listed for 31 mill shaugnessy mansion should definitely be added to the jump the shark archive. bizarro pricing indeed.

  10. Not sure everyone has noticed but, there seems to be no such animal as a flat market in stocks or housing for that matter. Up or down are the directions…still if a flat market existed for a while, I predict that realtards will have a hard time of it. It’s one thing to pay them tens of thousands of dollars when your house went up hundreds of thousands. It’ll be a different story to pay them if your entire equity after 5 years of paying your mortgage is swallowed up by them and you escape with your underwear. In negative equity territory which is entirely possible as well, imagine writing a check for a couple hours worth of work for $30,000. This will not fly… nope.

    We’ll see. It will be interesting.

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