“Now they are waiting for spring “when sales will pick up” and they’ve already bought air-line tickets for June, so they “must sell”.

“Yesterday I met a neighbour who is an immigrant from my hometown. I know that their family was going to move back because her husband couldn’t find a job in the financial field and currently works as a tennis instructor. They had tickets for September, but couldn’t sell their townhouse since last spring and so they returned the tickets. They also relisted their home several times during last year, but gave up in November.
Now they are waiting for spring “when sales will pick up” and already bought tickets for June, so they “must sell”. I haven’t said a word. What could I say?”

Aleksey at VCI 21 Jan 2013 11:03am

You could say: “Steadily drop your ask price until you hit a bid.”
That’d help.
– vreaa

10 responses to ““Now they are waiting for spring “when sales will pick up” and they’ve already bought air-line tickets for June, so they “must sell”.

  1. Real Estate Tsunami

    This anecdote highlights two issues:
    1. Our immigration policy that allows unqualified immigrants to enter our country.
    2. Immigrants are feeding the RE bubble.

    • Related, if they are permanently moving back and relatively unattached then in an underwater, illiquid scenario they may be more inclined to drop the keys in the mailbox and call it a day. Actually, once local people who are very stretched on the mortgage due to the “buy now or buy never mantra” are underwater enough to not be able have realistic hope of paying off difference in a sale or making it up over reasonable time through appreciation, my take is a good chunk will make a hard decision to stop paying as well and take the hit.

  2. I don’t understand. Can’t one sell a house in absentia? Seems to me that people do that all the time. So the timing of airline tickets shouldn’t make one iota of difference – in September or this coming spring.

    • Real Estate Tsunami

      They need the money to start over again in their homeland.
      They would be ridiculed if they returned to the village with less than they left.

      • Yeah, they are trying to get out of Dodge but now they have discovered their smart investment has turned into a hunk of lead and they can’t get escape the gravity of the Best Place on Earth.

        Plus….how do they cover the credit card bill when they have no proceeds from the sale to make good on the debt.

  3. 1.
    Unqualified immigrants and fake refugees who come here with three wives and five kids do not buy houses, they usually leave on welfare in coop houses on tax payers dime. Those people do not buy houses so their impact on housing bubble is minimal.

    2.
    Qualified immigrants who do buy houses are very often victims of misleading immigration campaigns claiming there is demand for highly qualified employees in Canada. Hi-Tech business is leaving Canada (unions, hight taxes, hydro costs and idiotic regulations imposed by left wing provincial governments push business out of Canada). Well paid highly skilled jobs are shrinking and soon the only well paid jobs will belong only to privileged classes: unionized teachers, federal servants, public servants, tenure profs, fat chiefs, quebeckers (those in federal government) and all other bunch that has insanely awesome incentives, pension plans and salaries funded by all tax payers.

    There is no need for high skilled employees here, we need skilled trade people: car mechanics, HVAC specialists, welders, truck drivers, etc… This should be emphasized when new immigrants are applying to come here.

    Broken immigration system in only one (not the biggest) of many reasons why we have housing bubble and falling economy. The big factor here plays total financial illiteracy among Canadians: young people are taught here how to hug tree and recycle bottle but nothing about banking system, mortgages, credits, financial responsibility, etc…. Those folks go to university with out any prior research in job market and waste their time, tax payers $$ (if have scholarship) or parents $$$ (if don’t have any scholarship), They graduate and are absolutely unemployable since all their skills are limited to posting photos on FB and sitting in StarBucks.
    Those who graduate with engineering skills may leave Canada and find job in Mid East or US, those with useless diplomas like “International Peace” or
    “Social Science” may find job in fed gov if they are francophones, if they are anglophones they may work in starbucks or second cup.

    Housing bubble would have been avoided if Canadians had a proper financial responsibility and awareness (common sense would be good too).

    • Overseas ‘engineering’ opportunities are by no means restricted to the ‘HardSciences’, OD…

      http://logosjournal.com/2011/fall_walton/

    • It is a fallacy that there is a big shortage of qualified tradespeople here.There IS a shortage of tradespeople willing to work for minimum wage.
      There is also a shortage of employers willing to invest in apprentices. Just ask any recent BCIT trades graduate looking for an apprenticeship.

      signed by a 57 year old tradesperson working in a facility that is protected by a security guard with a medical degree from overseas.

  4. Realtor behavior

    Nobody can get out whole in a stagnant RE market. Even buying and selling at the same price, a big hole of about 10%, i.e. realtor fees, land transfer fees, lawyer fees and various repairs will definitedly be done for the least. The only winner of this tumbling / stagnant market are the agents. Unless you are having a union job, coming across your dream house which is affordable singlely and offered a slashed asking price Vs market value for the property, and the size of that property fit your supposed family growth in the coming decade, then a purchasing a property might be good for you if you’re tired of moving again. And, be prepared down the road, you can still run into another better, or cheaper for-sale property, and if you can still enjoyed what you have, I would say why not and good luck! Otherwise, there comes a thousand of reasons you’re forced to sell while hardly getting a buyer.

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