West Side Property Example – Resold Feb 2013 At 9% Below 2011 Sale Price

“Just though I would pass along this info as I had the history of the
property at 2662 W KING EDWARD AV because I was watching it:

Sold May 2002 – $495,700 (5 days on market, $27K over ask)
Sold Nov 2009 – $1,230,000 (2 days on market, $41K over ask)
Sold May 2011 – $1,810,000 (25 days on market, $8K under ask)

Oct 2011
New Listing – $2,100,000

July 23, 2012
Price Reduced! – $1,999,000

Listing expired

September 19, 2012
New Listing – $1,830,000

Listing expired

February 18, 2013
New Listing – $1,830,000

Sold Feb 2013 – $1,650,000 (17 months on market, $450K under ask)”

– Many thanks to ‘NSR’ who sent this along by e-mail to VREAA 21 Feb 2013

If this was a flip, and there is a high chance of that given that it was bought in May 2011 and put back on the market in Oct 2011, then the loss is $160K plus transfer/commission costs plus carrying costs.
– vreaa

18 responses to “West Side Property Example – Resold Feb 2013 At 9% Below 2011 Sale Price

  1. Looks like a “loss”. $500K ten years ago. At 4% appreciation I’m still clocking overvaluation.

    • No kidding, from $495,700 to $1,810,000 in nine years – that’s an increase of 16% per year. And this wasn’t a new build. Just an old ugly POS.
      But there is no bubble…
      At your arbitrary appreciation rate of 4% (Why? Isn’t the official inflation rate lower?), this should be 55% lower…

      • The 4% is a rounding of Froogle Scott’s recent 3.6% trend line, perhaps?

        yes, 55% lower or more.
        Wouldn’t be surprised to see properties like this at 600K – 700K in the trough (lot value?).

  2. Hi VREAA – in my darker moments, I sometimes wonder if the flippers care. I mean, if you have $2m to spray on a house, are you going to worry if you take a bath for $160K (5%)???

  3. It was listed on Oct 2011 for $2.1M. It sat on the market for 17 months!

  4. Here’s another good one. I’ve started monitoring house prices and listings in my old ‘hood in Kitsilano (sold in 2011). There are currently 23 houses for sale in my watch area. Many of these were originally listed last year, expired, then relisted again in the new year. To my knowledge this is the first price reduction of the bunch since the new year and it’s a good one.

    3215 W 12TH AV: Listed Feb 9 @ 1,998k
    3215 W 12TH AV: Price reduced Feb 21 @ 1,788k

    That’s a price reduction of -210k or -21% in one shot. This property is a 1999 build on a 40 foot lot, and in my opinion the original listing price was not unreasonable relative to other listings in the area. Would be interesting to know what the assessed value is. Prices in this area have held really firm for at least a year but it looks like finally someone has blinked. This lowers the bar for others trying to sell in the area and for sure it will have not gone unnoticed by these other sellers.

    • Seeking knowledge...

      Isn’t it more like -10.5%? It’s still a substantial drop, but considering how crazy it is for an average person to spend 25 times their annual gross income for a house, I’m still baffled. Are there that many doctors, lawyers, and CEO’s that live in the west side?

      • Lots of doctors, lawyers and CEOs in Kits but we rent or live in duplexes. We can’t afford SFHs on the Westside!

    • I’ve been watching this listing with a tad of interest as well. Mostly because it’s one of David Richardson’s listings. I watch his listings because his listings are typically realistically priced to sell. So, this adjusted price should be more indicative of what it might sell for. (When it was first listed, I thought it was high and a bit surprised as this is not his tactic.) His website, by the way, used to show the price places sold for…. no more. Anyhow I’ve never met the man, but I do respect how he prices homes!

      He sold an acquaintances house last year very near this house. An old POS on a 33 foot lot for $1.5 million. He told the people who were buying up to wait as the top end of the market – over $2 million was very soft. They didn’t wait, and bought a $3 million house. They’ve likely lost $500 by now. I got this story from them when I told them to wait and they said…. that’s what our realtor says.

    • Lots of SFH’s in Kitsilano have been dropping

      The one you mentioned dropped 10%

      2975 w 8th is down 13%

      3335 w 11th is down 17% and $400K even after recently raising the price by $30K!)

      3115 w 12th is down 6% and $150K but still listed for almost double what it was in 2009

      not as many huge drops as other places in van west but then again Kitsilano prices are the most reasonable imo for Vancouver

    • My mistake… yes, that should be -10% drop.

  5. West Van Tree Dweller

    According to BC Assessment website, assessed at 1,889k

    • It’s a new rule – list at the assessed price minus 100k and hope to sell at the list price minus 100k. Next year’s assessed price is going down by 200k as a result of this year’s sales, what would be the strategy then?

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