“We recently let our recreational property listing lapse because we could not get what the property was worth to us. We will try again in 5 or 6 years.”

“We recently let our recreational property listing lapse because we could not get what the property was worth to us. We will try again in 5 or 6 years.
We sincerely want to sell, but on our own terms. I wonder how many listings are driven by expectations of windfalls and not need.”
Jim at yattermatters.com 20 Jul 2012 7:33pm

In 5-6 years time, that property will almost definitely have a market value substantially less than it does now. If the proceeds from this sale are important to retirement plans, Jim should sell now.
– vreaa

11 responses to ““We recently let our recreational property listing lapse because we could not get what the property was worth to us. We will try again in 5 or 6 years.”

  1. WHEN WAS IT EVER ABOUT “MY TERMS”? Wake up, FFS

  2. The number of people that will be retiring in 5-6 years and will want their cash out, will be in the millions..

  3. 4SlicesofCheese

    HPI out today for June

    Vancouver

    % change m/m 0.5%

    % change y/y 3.1%

    Yah…

  4. The comment above didnt say anything about Jim was retiring…maybe he was also driven, like he mentions, by hype and not because he’s going to retire and will be peenyless…common sense dictates if he has a (maybe) paid out rec prop that it doesnt matter when he sells or not…?

    • He may have a paid out rec property, but does he have a full pension? If his retirement funds aren’t up to scratch and it costs him too much to keep the cottage he may need to sell. It isn’t critical he obtain the funds now, but in 5 to 6 yeas, it may be.

  5. Good to be out

    Here’s a sobering thought for all you BC recreational property owners thinking about selling. A couple of weeks ago I came across a beautiful lakefront property with a cabin on it for sale in Washington State for 50k. It’s a one hour drive from Vancouver, and is 10 minutes from Bellingham. Needs some work but with another 20k into the place it will be a killer getaway. I’m closing the sale this week. I had been looking for a modest waterfront property in the BC Lower Mainland within a reasonable driving distance from Vancouver, but could not justify the absurd prices people are asking. There is nothing, and I mean nothing available in the Lower Mainland for less than 350K that compares to what I am purchasing in Washington State for 50k. That’s SEVEN TIMES more expensive for exactly the same thing. The US is about 6 years ahead of Canada in terms of a real estate correction. My question is where do you think BC recreational property prices will be in 6 tears time?

  6. Recreational property market is around 2005/2006 values. It isnt going to change, and may even fall a little further. The more these types of vendors defer their sales, the greater the carry over stock will become.

    There is a reason these properties sit on the market for 1,2,3,4 years without selling. The buyers think your nuts!

  7. Dimitri Tishchenko

    Interesting to look back and read some of these articles in retrospect. I wonder what percentage of issued mortgages have been effectively 0 down since 2008.

    http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2008/09/cash-back-contr.html

  8. [Off topic]

    I’m not sure about REBGV, but TREB now releases quarterly data by district sales, average/median prices, listings, etc.

    Not to my surprise, after reviewing the data for GTA, it turns out that the highest growth rates from Q1 to Q2 are districts with homes/condos under construction. I’ve been pounding the table for some time stating that average prices are badly overstated by the boards due to pre-con sales.

    I know this blog is based on Van so bare with me for an example with Toronto.

    Here is TREB’s new quarterly data by district https://docs.google.com/file/d/0ByrPFSoPLahJMlBjaVhndUcxRDg/edit?pli=1

    In The City of Markham, the district Unionville shows a median price gain of 51% q/q. Sure enough, there is all pre-cons in this area http://tinyurl.com/cvxy4uj

    Newmarket, Stonehaven median price up 29.8%, Pre-con area http://tinyurl.com/clke7j4

    Mississuaga, Creditview median price gain of 18%. Again, pre-cons http://tinyurl.com/bq8swj5

    And there’s many more..

    These are huge median price gains, meaning, more homes at that price level had to have been sold. It’s difficult to believe that resales could have pushed the median that high when the above evidence shows new homes being constructed in all those areas. I have no doubt that numerous pre-con sales were being booked on MLS, more so starting in Q4 ’11 when sales started to slow down at developer’s sales office, giving them no choice but to list pre-construction listings on MLS.

    I’ve tracked numerous pre-con sales on MLS: Example http://postimage.org/image/xzlxhkgfb/ but this unit is not built yet http://tinyurl.com/d96ajlj

    The boards must have come around the realize how this is going to sustain falling average prices for some time. This is why (I believe) they are pushing their HPI. It’s to divert everyone from a collapsing average price that was built up of future demand that isn’t sustainable anymore.

    I’m not sure if anyone has access to MLS listings, but I wouldn’t be surprised if one found many pre-cons being booked on Van’s MLS system; after all, does anyone really believe that prices soared that high just on bidding wars? I highly doubt that.

  9. I told that before – the practice when the stats are being manipulated is usually back fired and it is against the FIRE industry members interests. Only selected few on the top are going to benefit from the artificially inflated stats, the rest of the industry is going to suffer because of them. They send the wrong signal to the sellers making them to believe that the market is still growing and as a result the sellers are going to be reluctant to lower the prices. At the same time the buyer is maxed out and is unable to buy at the current price point, so the RE market is going to stagnate, no sales and eventually they all are going to be left without work. They would have to do just opposite – to make sure that sellers understands that the market tops and that it is going down so the sellers hurry up to sell before it is to late, even at the loss – assuming that tomorrow the loss might be even bigger. That would make the market moving again. Instead the big developers component of the RE associated industries is now working against the rest of them. Not to worry, they will eventually chock each other.

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