“Vancouver home buyers are ‘seeking their revenge’ after a long running housing boom”.

“Vancouver sales are 40% below the ten year September average. And as the Bank of Montreal’s Sal Galteri puts it “Vancouver home buyers are seeking their revenge after a long running housing boom”.
– from ‘The ‘revenge’ of the Vancouver home buyer’, video clip by Michael Babad, G&M, 3 oct 2012

Archived for the chronology, largely for the interesting turn of phrase.
– vreaa

17 responses to ““Vancouver home buyers are ‘seeking their revenge’ after a long running housing boom”.

  1. Ralph Cramdown

    Given how slowly price reacts to rising supply and falling demand in the housing market, this is a dish best served cold.

    My favourite idea is the reverse auction. Fax some paper to five sellers’ agents, stating “This not an offer, but merely an offer to treat. I am starting negotiations with five property owners, and you have been selected as one. Firm, unconditional offers to sell, irrevocable for at least 48 hours to be faxed to my broker no later than 7PM Monday. Lowest or any offer not necessarily accepted.”

    • The only reason why prices are reacting more slowly then 2008 is because the boards have decided to amalgamate future sales into current statistics. This adds dollar volume to average prices.

    • Except you forgot to mention that the four higher offers get a chance to learn what the lowest one was, and respond with a revised offer to sell.
      Round and round we go.
      Hey, the UHS’s were happy to spark a bidding war on the way up, this is exactly the same thing.

      • Cranston Snord

        I like it. I like it a lot.

        The assumption often is that the market knows exactly what the selling price of a product is. This, in practive, isn’t usually true. Or if it is, there’s a serious time lag due to data collection and dissemination.

        Be the economic catalyst!

    • problem with your system…you want the product far more than the seller needs your money. You might have some success with the developer who has creditors to pay, but you have no power against the individual homeowner.
      And when prices are retreating just see if you can find 5 properties you like – see if you can find just one.
      Trust me fella, I’ve been there

      • This is true, thankfully mortgages are not credit. Most homeowners don’t have creditors to pay, majority of Vancouverites buy with cash anyway.

      • formula1 -> “you want the product far more than the seller needs your money” … “you have no power against the individual homeowner.”

        You continue to overestimate the tenacity of prospective sellers; you seem to have a picture of owners leisurely displaying their wares with an infinite amount of time to sell and a limitless amount of patience. We surmise that by the time a property is actually put on the market, an expectation-to-sell clock starts ticking… and when you add to that steadily falling prices, some sellers become increasingly motivated.
        Furthermore, it only takes a very small minority of owners to become seriously motivated to sell for a market to plunge.

      • Burt -> “majority of Vancouverites buy with cash anyway.”

        Thanks for the laugh.
        Did you see this?:
        “According to the latest data from Will Dunning, Chief Economist of CAAMP, less than 4 in 10 buyers have 20% down payments.
        For those purchasing from 2010 through spring 2012:
        41% had less than a 10% down-payment
        21% had a 10-19.99% down-payment
        Only 39% put down 20% or more.”

        [hat-tip jesse]

    • Novel idea, Ralph.

      I would do another route. Figure out what you would pay for the property and offer it. Tell the Realtor the offer is open-ended but revocable if you find another property to buy first. It is unlikely you’ll be able to catch the person trying to sell at his weakest moment, but with the open-ended offer you’re only a phone call away when that time comes.

      Problem is, for me, market prices are way too high for any offer I make to be considered legitimate, so here we are.

  2. Rumour has it, Frankenstein’s WestSide OpenHouse didn’t go all that well this weekend…

    [NoteToEd: They don’t write ’em like that anymore!… Frankenstein: “Yes, go! You live… Go! (turning to Doctor Pretorius) You stay. We belong dead!”]

  3. In other news “BuyersRevenge”… Abbotsford ‘HouseShoppers’ have apparently upped the ante on RecalcitrantSellers… with a new form of DriveBy ‘CurbAppeal’ critique…

    [CBC] – House sprayed with bullets in Abbotsford, B.C.

    …”Constable MacDonald says no one was injured in the shooting and police are trying to figure out why the house was targeted.”…

    http://tinyurl.com/8aw3bsp

  4. The pieces titles “The ‘revenge’ of the Vancouver home buyer” is misleading. It implies a willful act, it should be called “The disappearance of the Vancouver home buyer”.

  5. It’s not revenge, it would have happened no matter what.

  6. in three years they will find the sneaker clad foot of the Vancouver home buyer floating in English Bay and will take another year after that to call it a suicide from the Winter of 2013

  7. Robert Pickton… played by Stephen Harper… takes unsuspecting girls…played by joe six pack and his wife pamela passive-aggressive… out to a party at piggys palace….played by the west side of vancouver.. where they all tear into a big old party attended by senior police and local political bigwigs…played by the usual suspects… but when the party is over and the politically connected have left the party and the gang has milked joe and sally for all their financial and political capital…Robert throws them into the woodchipper.
    his plan is a success. god knows the sick and twisted machinations of Harpers mind and what the end game is… but the evisceration of the canadian middle class is just over the horizon…if the four horseman of the good book arent arriving as foretold.. well then we are duty bound apparently to create the circumstances to hasten their arrival..
    im just guessing

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