Vancouver (un)Real Estate

Solipsist has created an interesting Vancouver Real Estate blog called Vancouver(un)RealEstate where he focuses on specific examples of properties that have been rotting on the market for more than a year. The fascinating thing about these specific examples is that they’ve been raising the price when the house doesn’t sell.

Now I’m not educated in the mysteries of economics or supply and demand, but if you can’t sell a house for your asking price in a year, does it really make sense to raise the price? Any theories (other than insanity) on how this happens?

Good work solipsist, I for one would like to see more of these example in the future if you’ve got ’em.

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Anonymous
Anonymous
13 years ago

take this newly built listing V594380. at first, it was 650k, then raised up to $688k, sitting there for many months with no taker. now it has a reduce sign infront and for rent sign on the window.

wannaget2calgary
wannaget2calgary
13 years ago

"Isn't that like climbing higher up a tree"No, not tree. Think bean stalk. They think they're Jack climbing the Bean Stalk, and are hoping for a golden harp and a goose that lays golden eggs.

ken
ken
13 years ago

I think that sometimes sellers, or I should say flippers, will keep relisting the price higher in order to recoup their losses in carrying costs while it sits.That would be insane. Isn't that like climbing higher up a tree because you're afraid of heights and can't figure out how to get down?

jer537369
jer537369
13 years ago

I think that sometimes sellers, or I should say flippers, will keep relisting the price higher in order to recoup their losses in carrying costs while it sits.

Anonymous
Anonymous
13 years ago

<a href="http://tinyurl.com/yjsb7ehttp://tinyurl.com/yjsb7e<br />The price on this one keeps going up, and up, and up and up. In June 2005, I think it was listed at $1.3m, which seemed stupidly steep at that time. Someone bought it, did some el cheapo renovations, and relisted at $1.55m or so. It's been going up (and not selling) ever since. Now at $1.75m and rising! (Get in now before you're priced out forever!)

wannaget2calgary
wannaget2calgary
13 years ago

"they raise the prices like clockwork every month, about $7000".Maybe this allows them to say with a straight face, "better buy now before the price goes up" and "these homes have been going up about $7000 a month for quite a while now."

TQN
TQN
13 years ago

was told by one of the realtor that sometime, the realtor/home owner prices the property with higher price hoping the market will catch up with it. They assume the market is going up forever!

mk-kids
mk-kids
13 years ago

solipsist – this raising the prices when a property isn't selling is crazy, i see it happening a lot with developers. check "the highlands" in pitt meadows – about 15 sfh almost all are completed, there are still a bunch for sale and they raise the prices like clockwork every month, about $7000. i noticed it too with the recent "shoreline" development out there – they're "sold out now" although a few are still listed by the developers realtor on mls.

Anonymous
Anonymous
13 years ago

the prices in the long run will be set by sellers that need to sellOr by buyers that have no common sense for "value"? A chicken or the egg type of thing?I know that I set the prices of my paintings too high (based on comparables), and people are interested, but refuse to buy. Mind you, I need to sell paintings, but people do not need to buy them. But I know that if I drop the price by 50%, I make sales.It's a bit different – I know. But you may well have a point…

ken
ken
13 years ago

I am beginning to wonder if it is the bottom end (that doesn't drop when not selling) that is propping up all else above.I don't see how that could really work – There will always be overprices POS properties on the market that just sit there, the prices in the long run will be set by sellers that need to sell. We haven't seen much of that yet, but we will.I guess its possible buyers fall into some of that psychology, but eventually you run out of buyers that cant afford to keep pushing the pyramid higher.

Anonymous
Anonymous
13 years ago

Thanks for the mention thepope.I have quite a few of these examples, and will keep digging. Rentah has offered to send me some too.I have been wondering if there is a connect between these languishing listings and the continually rising prices. Some have said that the upper levels of the market would be the first to show weakness, some say condo's, but I am beginning to wonder if it is the bottom end (that doesn't drop when not selling) that is propping up all else above.Some kind of weird psychology – Look, if that POS is selling for a half mil., the place that is .75 mil. must be worth it.It is strange to look at those old prices (in the 300's) and to think that they are "affordable" – when last year we were saying that they were ridiculous.