Andreas Conrad: [background] “I can’t do anything … unless I’ve sold.”
Announcer: “Andreas Conrad knows the market pain all too well… he’s trying to downsize, but can’t sell his duplex, originally priced at just over $2M, now $300K cheaper…
It’s been on the market for five months and Conrad says, without a sale, he’ll be forced out of retirement.”
Conrad: “For me now it means I will definitely have to go back to work… at the, at the end of the summer.. ah.. if nothing moves.”
Announcer: “This homeowner is just hoping his duplex sells, and fast. If it does, he’ll be back in the market to buy a condo right away.”
– anecdote extracted from ‘Vancouver residential real estate plunges’, CTV.ca, 5 Sep 2012 12:47pm [hat-tip Jeff Murdock]
Many Vancouverites are overdependent on their RE holdings for their financial health, and for their retirement plans.
This gentleman appears to have retired early based on the paper ‘value’ of his RE holdings, and already his plans are awry.
It is noteworthy that this is occurring very early in the down-cycle. We anticipate that many more will find themselves in similar situations once price descents become significant.
Here follow comments posted regarding this CTV piece, from CTV and VCI:
“Am I suppose to feel sorry for a guy who has a home valued around $2 mill and can not sell it and have to return to work. I do not know the age of this man but he looked like he wanted to retire early off his home.”
– leo, at CTV.ca, 6 Sep 2012 2:42pm
“Yeah, Andreas…people elsewhere have to actually work to make money, cuz their dwelling-place doesn’t actually generate income so they can retire at 50…”
– kabloona at VCI 5 Sep 2012 6:57pm
“I saw that guy on CTV news too. Crying that he’s going to have to get a job soon if he can’t flip his crack shack for 2 million. He didn’t look old enough to be retired to me. I said out loud to the TV, “Good, you should get a job.” Why would anyone feel entitled not to work for a living? Why would anyone go on the news and expect sympathy that they might have to get a job to earn an income?”
– Joe_Blown_Away_By_High_Housing_Costs at VCI 5 Sep 2012 7:09pm
“I would like to be the first in line to order a latte from Andreas when he starts his new job.”
– Best place on meth at VCI 5 Sep 2012 8:53
“Andreas seems like a perfectly nice guy to me; just having a hard time adjusting his expectations.”
– Anonymous at VCI 5 Sep 2012 10:37pm
“We live in a world where people have increasingly lost the distinction between ‘making money’ and ‘producing wealth’. Most people out there would be perplexed by the notion that there is even a difference at all. There is no less admiration for someone who becomes a millionaire by picking the right stocks than someone who gets rich building a real business or producing a tangible service that creates real wealth.
In fact, given the choice, the overwhelming majority of people would rather get rich without working at all, which is a big part of why we currently have the most morbidly obese housing bubble in history.
Sadly, I don’t think people will wake up to the distinction even after the bubble bursts. Since so many people will be negatively affected (70% of home owning Canadians), expect to see a whole lot of resentment and bitterness at all the ‘lost wealth’ rather than a realization that it was never there in the first place.”
– Yalie at VCI 5 Sep 2012 7:59pm
The CTV piece was also noteworthy for these two quotes:
Andrey Pavlov, SFU: “The time on the market has tripled since 2 months ago, so that’s a crash by any measure.” [We’d agree with the sentiment but disagree with the semantics. A crash will only be said to have occurred when prices plunge. -ed.]
Cameron Muir, RE Association: “It wasn’t too long ago that we had the greatest financial crisis since the great depression, followed by a global recession. If that wasn’t the tipping point or a trigger for a deflation of an asset bubble, I don’t know what is.” [In 2008 Vancouver RE was rescued by emergency low interest rates, which it sorely did not need. This delayed our hour of reckoning, but it seems now upon us. -ed.]