Nanaimo – “I have talked to about 20 people who say sale prices in their neighborhood are down approximately 20 percent in the past six months based on actual neighbors they know who have bought and sold.”

“Greetings from the mouldy city of Nanaimo. I have talked to about 20 people who say sale prices in their neighborhood are down approximately 20 percent in the past six months based on actual neighbors they know who have bought and sold. It’s funny how the real estate agents’ cartel shows no change. How can this be?”
– from Musty basement wannabe, greaterfool.ca, 30 Jan 2013 12:34pm

Clearly, your neighbours are all wrong.
Only kiddin’.. clearly prices are down.
But the real estate salespeople aren’t really a ‘cartel’.. they’re just a group of individuals doing their best to protect their interests by keeping the market turning over.
– vreaa

33 responses to “Nanaimo – “I have talked to about 20 people who say sale prices in their neighborhood are down approximately 20 percent in the past six months based on actual neighbors they know who have bought and sold.”

  1. UBCghettodweller

    But doesn’t everyone want to retire to the island?

  2. A good site for Nanaimo area is http://www.buynanaimo.com/default.aspx?tabid=654&mortgageinfo=foreclosure&focus=Foreclosures. It is not unusual to find listings at 20 – 25% below assessment. Some have been on market for 538 days.

  3. I would like everyone to remember this as they watch a market collapse with their eyes, but a read about a “balanced market” in from the real estate boards.

    http://online.wsj.com/article/SB10001424052748704476604576158452087956150.html

    Don’t trust anyone with a vested interest

  4. Not surprising. Most blogs or info in the MSM is littered with those with their head in the sand and don’t see the signs when sales like these go through. They try to discredit the sale as the house was in poor shape, bad neighborhood etc etc, but so many houses on the market in the low to mid ends in good neighborhoods are in desperate need of major renos and they are still asking ridiculous prices. Major shearing coming this spring.

  5. Remember people, prices are not down. They have simply moderated.

  6. The parrot isn’t dead, it’s just resting.

  7. People on the island are dying faster than they can be replaced. It’s all very simple.

  8. Real Estate Tsunami

    As usual, we can’t trust the talking heads.
    So let’s again search for the truth on the ground:
    Austin Kay and Anita Chan, two profligate Realtors in Richmond sent me a pamphlet which states “106 Homes SOLD in 2012”.
    Then it says, Proven Track Record
    * 106 Homes Sold in 2012
    * 171 Homes Sold in 2011. and then the stinger:
    * 101 Homes Sold in 2008.
    Conclusion: 2012 was almost as bad as 2008, a year the bottom fell out of the market!
    Enough said.

  9. @vreaa – I disagree with you on ” the real estate salespeople …they’re just a group of individuals doing their best to protect their interests by keeping the market turning over” – why do you assume that used home salespersons – realtors – are interested in protection of the interests of the seller if they need a volume to survive? It is really a simplistic approach to their position now when the industry as a whole would benefit from correction but the personal position may vary depends on their own RE holdings.
    I think that many of them are at the conflict of interests now – they actually need a market to come down to start breathing (to a price point when the bulk customer can be qualified for a loan) but on the other hand many of them are also heavily invested in RE by themselves and they hate to see the prices to come down – but as a RE industry they would be better off if the market came down finally and people were able and willing to buy again, look at the local RE markets in US – many of them underwent the correction by 30-40% and the volume is starting to build up.

    • Real Estate Tsunami

      I’m renting now, but it the past I bought and sold quite a few properties.
      I always used a realtor when selling.
      My first realtor actually had my best interest at heart. Unfortunately, he retired. All the other realtors seemed more interested in getting me to sell quickly. I guess one of the problems is the fee structure.
      There is not much difference in fees for selling a property for 500k vs 550k

    • A prolonged market crash would result in fewer mortgage approvals and less transactions. By the time transactions reach the same numbers as during the glorious days of the bubble, many realtors may starve to death.

  10. i thought the Olympics were supposed to make every corner of BC booming for generations to come

  11. RE Bear Stalker

    Electronic Arts slashes 2013 outlook as industry struggles
    http://ca.reuters.com/article/technologyNews/idCABRE90T1FB20130131?sp=true

    Gaming industry is big on West Coast-BPOE.. Not a few RE speculators designing video games between flipping

  12. Check out today’s Toronto Star cover link

    So basically, CMHC has been subsidizing and indirectly funding bankers, bikers and mobsters. Your tax dollars hard at work.

  13. Confucius say, “Year of BlackSnake bad for YellowHelicopter.”

    [WaPo] – For China’s workers, austerity drive means unhappy New Year

    …”But the austerity drive launched by the new Chinese leadership of Xi Jinping, coupled with the economic slowdown, has led government departments and state-owned enterprises across China to cancel or radically scale back New Year festivities this year — the equivalent of office Christmas parties in the West, but often far more lavish… Some multinational companies say they are struggling to find any government officials willing to be wined and dined, as they scramble to respond to a fresh call for frugality from Beijing, part of the leadership’s anti-corruption drive.”…

    http://tinyurl.com/cj9p96r

    • [#Ooops] LightlyUsedPulpMill, anyone?

      [G&M] – China’s CorruptionCrackdown Hones In On BC Pulp Mill

      …”Several state-linked media organizations in China, including Global Times, China Daily and Shanghai Daily, reported this week that Mr. Liu, who is also a vice-director of China’s top planning agency, the National Development and Reform Commission, is the target of an anti-graft investigation. The probe was spurred by corruption allegations made by an editor of Beijing-based Caijing Magazine.

      Mr. Liu is alleged to have helped arrange an attempted loan of more than $100-million to Mr. Ni by two Chinese banks. Mr. Ni allegedly claimed the funds would be used to buy the pulp mill in Prince Rupert, an asset that he had already purchased in 2005 for about $9-million. A forged appraisal report valuing the mill at $202-million (U.S.) was used to attempt to secure the loan. The Globe has obtained a copy of the apparently fraudulent report. The appraisal firm named in the documents, American Appraisal Canada Inc., denies ever issuing the report.

      Mr. Ni’s original investment in the pulp mill was made through a company called CGR Investments Inc., which was incorporated in 2003. CGR later became a subsidiary of another company controlled by Mr. Ni called Sun Wave Forest Products, which completed the purchase of the mill. Mr. Liu’s wife, Guo Jinghua, was a director and 10-per-cent shareholder of CGR, according to documents obtained by The Globe. In 2005, her ownership stake in CGR was transferred to Liu Dechang, the son of Liu Tienan and Ms. Guo.

      As part of the mill purchase in 2005, Mr. Ni and Sun Wave promised, in exchange for tax relief from the city, to restart the operation that was once the top employer and source of corporate tax revenue in Prince Rupert. But they never did and the mill has remained shuttered, largely unchanged from when it was shut down in 2001. The city of Prince Rupert seized the property and land from Sun Wave in 2010 for unpaid taxes. Sun Wave has sued the city, a protracted legal action that has prevented the municipality from reselling the land despite a consortium of buyers willing to take on the millions of dollars worth of environmental liabilities associated with the mill.”…

      http://tinyurl.com/aa7s33e

  14. Name (required)

    vreaa how long till we get to 2001 prices?

    • No idea re exact timing of the trough.
      Sometime this decade, most likely.

      • Sooner, rather than later… if the Dutch experience is any guide…

        [#Ooops]

        [BloomBerg] – SNS Nationalized in Netherlands After Real Estate Losses

        …”The Netherlands moved to take control of SNS Reaal NV (SR) after real estate losses brought the fourth- largest Dutch lender to the brink of collapse, the country’s second banking nationalization since 2008.

        The move, aimed “at stabilizing the SNS Reaal group,” will cost taxpayers 3.7 billion euros ($5 billion), the Dutch Finance Ministry said in a statement today. SNS’s property- finance unit will be separated from the company.”….

        http://tinyurl.com/b3kendn

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