Westside Land Price Drops – Example: 2011 $1.7M for 33′ lot; 2012 $1.45M for 44′ lot

Sold in 9 days; 3449 W 23rd
Assessed 1.864M; Asking 1.78M; 44′ lot.
1.78M is good for Dunbar for a 44′ lot (based on last year’s sales of 1.7M for 33′ lot)
This one sold 1.45M tho.
22% below assessed; Great deal in today’s market.
Good building lot. 5 lots in from Collingwood. South facing.
Market is very slow. People still asking 1.8M+ for similar lots in other parts of Dunbar. Seems like people lowballing here and there and once in awhile somebody bites. Not sure how other sellers would react.

gse36 at RE Talks 31 Aug 2012 11:07am

This particular example represents a 36% drop in the cost of Dunbar land: from $422 per sqft to $270 per sqft.
Lesser price drop example (but of possibly dissimilar lots) from the same source:

“4060 w19th 32.68×122 sold 1.656 in march land value
4034 w19th 33×122 sold 1.519 in sept
8.3% decline in 6 months.”

gse36 at RE Talks 8 Sep 2012 6:10am

17 responses to “Westside Land Price Drops – Example: 2011 $1.7M for 33′ lot; 2012 $1.45M for 44′ lot

  1. With land values/sq ft changing as abrupt as the Dunbar stats above,
    B.C. appears to be setting itself up for a ‘lost generation’, a 10 year period similar to that of Japan in the 1990’s.
    http://www.edwardjayepstein.com/TheMythOftheLostGeneration.htm

  2. Those lots do look reasonably similar but it would be good to get some insight from someone who is tracking the market closely. I can’t see much difference between them other than a (slight) grade on 4060 but maybe I’m missing something. Maybe the view (of other houses) is a bit better on 4060?

  3. This seems to be in the range of what the non-frothing at the mouth bears have been predicting. 5%-10% decline every six months. The expected 30%-50% price correction (inflation not adjusted for) should be done by the end of this decade. Not a crash, but a slide. Probably for the better.

  4. “Sold in 9 days…………. Market is very slow”

    What’s wrong with this picture?

  5. Everybody seems to be ignoring the fact that $1.78M is still ridiculously expensive for a 44′ Dunbar lot. 10 years ago it would have gone for about $700k, and the economy has not improved/chnaged so much in a decade to justify such a massive price increase.

    • Bob -> Note that it sold for $1.45M, not $1.78M.
      But your observation stands nonetheless: $1.45M is still ridiculously expensive for one of these lots. That is why we expect many of the homes/lots on the westside to have dropped by well over 50% by the trough, 66% not out of the question. We’d fully expect there to be sales of 33×122 lots in the 500K range. Still pricey by global standards, but arguably fair value for the land (and the added-in Vancouver mild-weather/in-Canada premium).

    • In many other Canadian cities, a lot like that which is near a major university, parks, grocery stores and some shopping and in a nice established community would have sold for a third to half of that price in a best case situation. This again is an example of how the market has lost all sanity and operates on extremes of fear and greed.

      BPOE should read “Bipolarist Place On Earth”

      Currently it’s still manic. Get us some Lithium.

      Nemesis- I expect an appropriate youtube link please.

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