Call For “Unity Of Sellers” To Prevent Further Price Drops

“Richmond RE Pumper “GreatChina” writes on a local Chinese Forum calling for “Unity of Sellers” to prevent further price drops:
“A brand new house in good area of West Richmond, 8111 Dalemore Rd, was just sold for $1.58M, $170k lower than assessed price of $1.75M. It’s a shame that the buyer went through so much to purchase this property and build a new house, hoping to earn some money while doing a service to the community, only to have the buyer recklessly slashing price. I call on the sellers to withhold giving in to under-asking offers. We should all pull our listings and wait until a better market to sell in a bidding war situation”
Current listing: MLS® V953065
Purchase price: $533,000 Oct 2006 (old timer, was torn down and rebuilt as luxury mansion)”

VMD at vancouvercondo.info 28 Jun 2012 12:07am who also commented “HAHAHAHAHA”.

Sellers don’t “unify”; sellers compete with each other for buyers.
The “hoping to earn some money while doing a service to the community” passage earns our disdain.
– vreaa

23 responses to “Call For “Unity Of Sellers” To Prevent Further Price Drops

  1. My fellow countryman obviously didn’t read the finer points of Capitalism 101. We are raging individual capitalists when times are good and scared collectivists when we are fearful…

  2. As vreaa says, sellers are in competition, not collusion, with one another. They can’t “unite” and demand higher prices any more than buyers can unite to demand lower prices. RE is the exact opposite of a monopoly: there are thousands of individual interests, each with their own goals and circumstances, all trading an undifferentiated good (box built on dirt).

    Similarly, prices are set on the margin; it doesn’t matter what some may ‘expect’ or consider ‘fair’. As long as there are transactions occurring at market rates–which there always are–everyone’s fate is sealed.

    • Renters Revenge

      Actually, I’d say there is a whole lot of collusion on the RE sell side: The listing service is a monopoly power, real estate agents are incentivized by price increases not decreases, the MSM gets ad revenue from a growing (not shrinking) RE industry, municipal revenues are driven by more and more “development”, CMHC (that’s you & me) has fronted nearly $1T worth of skid grease, and the entire financial/monetary system is held up only by growing debt – which in Canada has been primarily a growth in household and mortgage debt. So in sum, there is an awful lot of organized and coordinated forces demanding higher prices.
      But you are right about pricing set at the margin, it only takes one seller to blink, and the market turns.

  3. Fair enough, RR. But by “seller” I’m talking about the guy down the street. There may be lots of macro-level forces at work, but they apply more or less uniformly to everyone. What this agent is asking (hoping, dreaming) is that individual sellers join hands with other individual sellers. Ain’t gonna happen. I can’t think of a more-fragmented market than housing… pretty much every seller, current and prospective, has but one unit to offer.

    P.S. How exactly does real estate agents’ desire to earn higher incomes actually impact house prices? Substitute “real estate agent” for “used car salesman”… does the same logic hold?

    • Renters Revenge

      There is an interesting study on exactly that, you’re right RE agents may not really impact house prices as we would assume.
      http://papers.nber.org/papers/w13796

    • Renters Revenge

      You are also right that at the transaction level it is impossible to collude to fix prices. Still doesn’t take away the fact that there is massive collusion in the larger community which desperately requires continually increasing RE prices.

  4. This person has a massive entitlement issue.

  5. Some might call it a strike.

  6. “Richmond RE Pumper” GreatChina’s rallying cry for unity apparently hasn’t gone unnoticed in the upper echelons (NakedOfficials?) of the CPC… To wit, they are – even as you read this comment – despatching the MightyIcebreaker ZueLong (SnowDragon) to Canadian Arctic coastal waters…

    Clustered under the banner of the 5thBrigade, PeoplesRevolutionaryRealtors and boldy clutching their MetroTown Condo PreSales Brochures, the fearless crew of ZueLong prepare to utter their justifiably famous and terrifying BattleCry, “我買三個,我的隊長買了三個!”

    http://tinyurl.com/7pot9q6

  7. Doesn’t this constitute criminal conspiracy of some kind? Obviously there is nothing criminal in an owner picking opportune times to sell or not, but this is a clear and delibetate (if doomed to fail) attempt to collude and manipulate supply and price.

    As far as this non-lawyer is aware, that’s a crime, and doing so annonymously on the inner tubes makes no difference.

    Anyone here know what they’re talking about?

  8. The funniest thing about this post is I used to play some online computer games and people would post the same argument when others were selling game items too cheaply. I always assumed they were about 13 years old but it is pretty funny to see what is presumably an adult selling a home for over 1 Million dollars using the same broken logic. This is starting to get amusing to watch.

  9. Thai-born Chinese Canuck

    Different plots of land have different characters. Different sellers are under different financial situations. Those underwater only want to get out ASAP. If a carrot is being dangled in front of one of the unified sellers, won’t he/she be motivated to break the unity?

  10. I find myself taking great pleasure in his obvious distress. Is that wrong?

  11. The sad part is that they are only really suggesting sticking it to people who want to buy houses to live in. They can’t really collude against other investors, because those investors could just as easily invest in other markets around the world. It’s the people who are trying to buy homes in Vancouver that this poster is suggesting should be raked over the coals.

  12. YES THEY DESERVE TO DIE
    AND I HOPE THEY BURN IN HELL!
    –Sam L. Jackson (it’s ma beer!)–

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