Pretty Freaking Nuts, a Ridiculous Joke – “For it to go over $4 million is remarkable. I had five offers. These were local buyers.”

Vancouver1_0

“The house at 3555 West 1st Avenue was built in 1912, is 3,400 square feet and sits on a standard 33 x 120 foot lot without a view,” Vancity Buzz notes. “The selling price of $4.23 million is about $1.6 million above the lot’s assessed property value.”
For his part, real estate agent Brandan Price is incredulous. “For it to go over $4 million is remarkable. I had five offers,” he said. “These were local buyers just looking to make a shift who wanted to move into this area.”
“They were willing to sacrifice lot size to move into this area.”
Maybe, but things seem to be getting out of hand and part of the “problem” may indeed be demand from investors attempting to find a home for capital they’ve moved out of China. As Thomas Davidoff with UBC’s Sauder School of Business told Vancity Buzz: “These prices are getting pretty freaking nuts in my opinion.”
“As a proposition for someone who’s going to live in that house and what you’re getting for four million plus – that is a ridiculous joke and that is not something that’s going to work for people who just make a living in Vancouver,” Davidoff says.

– from “This Is Pretty Freaking Nuts”: Vancouver Home Sells For $735,000 Above Asking Price; Zerohedge, 29 Feb 2016

VancouverHomes_0

15 responses to “Pretty Freaking Nuts, a Ridiculous Joke – “For it to go over $4 million is remarkable. I had five offers. These were local buyers.”

  1. Let’s be totally clear: this was not a ‘home purchase’, a place to live. No, this guy bought this house because he thinks he is going to make money on it. Much like the buyer of Nortel at $124.

    • You’re almost definitely correct.
      If the purchaser knew that the price of this home was going to do nothing but keep up with inflation for the next ‘x’ number of years, they would almost definitely not have purchased it. Every purchaser of Vanc RE is a speculator, and this has been the case for many years now.
      See ‘Spot the Speculator’:
      https://vreaa.wordpress.com/category/18-spot-the-speculator/

      • hey,

        where is the 65.49% trajectory crash you predicted? could you please put out more prediction, peter russell needs it for his coming up comedy show.

      • rod_jonsson_pmd

        lets play ultima vreaa contrariana … sell vcr, buy aleppo, trump wins, you are golden^2

    • Love this logic from you guys, how cute. “Every purchaser of Vanc RE is a speculator, this has been the case for many years now”? Err.. so the fact that this family is probably going to live in tihs house makes no difference to you two. I got news for you, in that case, everyone who buys into the stock market right now is also speculating.

      One more thing, vreaa, you claimed back in 2008 that buyers were overextended. So if the buyers were so overextended back then, how in the world did they find all this extra leverage to basically double the price of single family homes in Vancouver in the last seven years? Would you not conclude then that the single family home market in vancouver proper is not at all supported by local incomes but completely supported by foreign money instead.

      Part of what you say about the laundry machine is correct but I have one more question if that is the case. If I really wanted a laundry machine, why do I not buy an asset in Edmonton if my sole goal was to simply launder the money? Why do I buy it in Vancouver whereby most of Canada has already caught on that this is happening? Btw, careful about the money laundering stuff, you are really stepping into territory that you have no knowledge of. Unless you have contacts from lawyers and bankers who actually handle this stuff.

      • Speculators buy based on expectation of future price growth rather than purely based on the current value of the use of the property.

        Buyers were overextended, they are now uber-overextended.
        And they got the money by borrowing it at close to zero interest rates.
        (Every time one of these deals passes, millions of non-earned dollars are injected into the economy… Vancouver is being held up by fresh air).

        Money laundering?
        I made no comment on money laundering.
        (You may be confusing me with zerohedge….)

      • Oh, you finally replied. I took a look at your spot the speculator column, best not point to things that you posted in 2010, that so called speculator has done pretty well for him/herself since then. I don’t think they look as foolish today as they did when you posted this.

        So I gave you a bit more credit than I thought. I thought at least you recognized the money laundering aspect of our real estate market which frankly most people don’t have a good grasp on, even myself for that matter but I know it exists.

        Btw, your uber extended theory is cute but talk to any mortgage broker and they will tell you there is no way local incomes could ever actually reach the valuations that you see on the westside detached. That is just not doable. I am surprised; I thought that when Andy Yan figured out that most of the detached houses on the westside are bought by people with non-anglocized chinese names you would at least recognize that the detached market is not driven at all by local incomes as just about anyone else has seen.

        But alas you do have one point. Detached is not the entire market, the attached side is actually littered with locals overextending themselves. But since I have no interest on that side and the two graphes has completely decoupled, there really isn’t much point in dwelling on the attached housing in my opinion.

  2. rod_jonsson_pmd

    gatsby! … due to be completed just in time … http://tinyurl.com/j5gtkb9 … and, is this surrealism? … http://tinyurl.com/z6j7u4h … passed pretty_freaking_nuts a while back … bot more schlong insurance

    • No Noah’s arc on the Vancouver Trump Tower!
      quote ~ Tiah, a born-again Christian: “The family has worked as a team and what we have achieved thus far is a blessing from God.” ~ unquote
      http://tinyurl.com/zwh5hvl

      • What’s the corollary of a religious wacko saying he’s been blessed by god? That, for example, those killed by earthquake and tsunami are undeserving infidels – including the children? You hear it often from trailer dwellers when a hurricane has passed by without killing them: “god was on our side”. God obviously didn’t give a rat’s ass about the other residents of the trailer park. He only saved those whose bellies hung over their jeans and had permanently visible butt cracks.

  3. How could someone buy into Trump Tower after seeing these ads? Could he have actually approved this rubbish? He probably left it up to Donny Jr.
    I’ve read all of Trump’s books. Saw the video: You’ve Been Trumped – documenting his bullying of the Scots to build a golf course. Best media on him is Bill Maher’s shtick accusing The Donald of being a feces-flinging love-child of orangutans in the NY Zoo.
    Mutual admiration of Putin and The Donald? They are both rich and like MMA, but they’re a completely different species of duck. When it comes to being badass mofos, compared to Putin, well, one of them is a Polyanna.
    Trump wants to build a wall – holding Mexicans responsible for the American predilection for drugs. Better to build a wall around the industrial food companies that have turned proud Americans into a bunch of porkers.
    Who knows? Maybe they can dance well together. Who will lead? Who will follow? Will it be a tango?

    • rod_jonsson_pmd

      caveat what is said vs what is done, of course – obama the peace prize winner being a very obvious example … this notwithstanding, the donald is the only contender who has said it was a lie/mistake to go to iraq, don’t need to be in syria, de-escalate tensions with russia … that’s enough to put him 1st on my list … bot enough bombs, bullets, bits of people everywhere already

  4. Greedy Jim Van Spamster
    Was a Greedy little Hamster
    Never was a Van stoner
    Started as a curbstoner
    Parlayed that into dealing
    Cars and trucks
    Oh, what a feeling!

    Then as a corporate raider
    Went on this cagey trader
    To take over a billboard company
    Now that’s all we ever see
    A blight upon our landscape
    This garbage in our mindscape.

    Never enough for Greedy
    Not enough for the needy
    This vertical conglomerate
    Plays his game with hate

    Disguised

    Disgusting

    A beautiful city
    With the warts of a Hamster
    With the highest child poverty rate
    This little Hamster
    We love to hate.

    When you die
    What says the fly?
    Tastes like shit.
    Yum.

  5. ShortandCurly

    If I didn’t like Canadians so much I would think this was funny but instead I’ll shed and extra tear when it happens. Clink, clink, clink, clink. That’s the sound of tens of thousands of upside down homeowners dropping their keys on their granite countertops as they walk away from their homes. Happy home owning! This ends ugly.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s