Our subprime problem: condo presales?
According to CBC radio news a new trend is emerging in the Vancouver real estate market: Developers are suing condo buyers who try to get out of their pre-sales contract now that their unit is worth less than they signed up for. CBC radio reports that over the last month local developer Amacon has sued 7 buyers for their deposit plus ‘damages’ which equal the difference between what they agreed to pay and the current market value.
Before the market peaked local economist touted our lack of ‘sub-prime’ as proof our housing market was different from crashing US markets. Our lenders didn’t hand out loans to people without a proven ability to pay. Unfortunately what we did have while the market was booming was a mania for condo presales. Presales were supposed to be a ticket to easy money. Anyone could take a credit card advance for the deposit and sign up for a presales contract, planning to flip the assignment before the building was even completed.
Unfortunately for speculators this game of financial hot potato came to a rather shocking end over the last half-year as real estate prices in the lower mainland began to drop rapidly. You can now find many listings on craigslist for people all over the lower mainland who will give up their deposit if you agree to take over their contract.
We have almost 4000 new condo units due to be completed in the downtown core alone this year, and buyers are hard to find. So now the question is how many people are out there that either don’t want to, or are unable to get financing to complete their presales purchase. Are condo presales the local version of the subprime problem, driving some into bankruptcy and contributing to supply in a crashing market?
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January 23rd, 2009 at 12:51 am
http://www.vancouversun.com/bu.....story.html
Vancouver’s Wall Financial Corp. scraps False Creek condo project to build rentals
By Derrick Penner, Vancouver Sun January 22, 2009
In the face of sales that have ground to a halt, Wall Financial Corp. has decided to scrap its 414-unit Wall Centre False Creek condominium project in favour of building rental apartments on the site…Wall Financial said it had sold almost 30 per cent of the Wall Centre Creek’s units, 120 in all, but that sales had come “to almost a complete stop” during the quarter.
…
Wall Financial said the slowdown in apartment sales caused it to halt sales on another project, its redevelopment of the building at 1212 Howe St….Wall Financial sold 109 of 150 units in the strata-titled 1212 Howe St. building, but said it would retain ownership of the remaining 41 units until the market improves.
January 22nd, 2009 at 11:52 pm
Just had a thought on the new 64B extra spending by the government in next two years, and probably 100B in 5 years. Where is the money from?
Here is one possible means to generate some net income for the government.
I heard a story a while ago, that Microsoft and IBM have big lawyer teams. Funny enough, the teams generate income, big income from the legal activities as both have a lot of patents and small companies are quite often to infringe them.
The government can do similar thing – create a big tax collection team, this by itself creates a lot of jobs. Then ask them to find and fine the offenders to raise at least themselves. In fact what I heard that Canada has too few tax men that only a very small percentage of tax report can be checked every year.
In addition to raise money, the side benefits are:
1. Makes the illegal work goes away, which saves legal jobs.
2. Chops those illegal rents, which will regulate to RE market.
3. Tracking down the some illegal activities, such as money laundry, grow-ops. A lot of those activities are likely RE related, and eventually makes the RE stabler.
January 22nd, 2009 at 11:22 pm
Here is something really funny:
http://www.irs.gov/pub/irs-pdf/p525.pdf
This is the US 2008 tax return giude. In the page 33, you’ll find the following statement:
Illegal activities. Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21.
—————————————-
I would love to see we have a similar thing in Canada to have those grow-ops at least pretend to pay some tax.
January 22nd, 2009 at 10:57 pm
Inventory:
Thanks Inventory for the stats.
A bit weird that Van West has the biggest number of JAN sales across those cities, though the number is not that big: 26. I guess some discounted condos might be counted in? There are always suckers, anytime. North Van has the deepest dip (-23% YOY), but the total number is only 8, does not count as a valid stat.
January 22nd, 2009 at 10:48 pm
john:
Have you people lost your heads? Vancouver is an OLYMPIC city!
1) Chinese investors want to relive the magic of Beijing
2) Vancouver condos are the best in the world by far
3) Unlike in Miami our condos are made by mostly legal workers with proper training making them highly valuable for asian investors.
4) SUVs are always good investments.
———————————————-
Just in case, did you miss the sarcasm at the end of your post? If yes, it is funny.
January 22nd, 2009 at 10:21 pm
JAN 2009 SFH+TH+APT (North Van)**Jan 21
Gross Sales 6,589,000
Units Listed 65
Units Sold 8
Sale Success Ratio 10%
Sales to Listings 12%
Avg Price/Unit 823,625 (-23%)
Active Listings 286 (+85%)
JAN 2008 SFH+TH+APT ()
Gross Sales 49,425,591
Units Listed 134
Units Sold 46
Sale Success Ratio 65%
Sales to Listings 34%
Avg Price/Unit 1,074,469
Active Listings 154
January 22nd, 2009 at 10:21 pm
JAN 2009 SFH (West Van)**Jan 21
Gross Sales 11,071,000
Units Listed 62
Units Sold 7
Sale Success Ratio 8%
Sales to Listings 11%
Avg Price/Unit 1,581,571 (-6%)
Active Listings 417 (+50%)
JAN 2008 SFH (West Van)
Gross Sales 71,019,900
Units Listed 137
Units Sold 42
Sale Success Ratio 38%
Sales to Listings 30%
Avg Price/Unit 1,690,950
Active Listings 277
January 22nd, 2009 at 10:20 pm
JAN 2009 SFH (Van West)**Jan 21
Gross Sales 34,789,800
Units Listed 128
Units Sold 26
Sale Success Ratio 12%
Sales to Listings 20%
Avg Price/Unit 1,338,069 (-15%)
Active Listings 674
JAN 2008 SFH (Van West)
Gross Sales 118,907,080
Units Listed 236
Units Sold 75
Sale Success Ratio 49%
Sales to Listings 31%
Avg Price/Unit 1,585,427
Active Listings 374
January 22nd, 2009 at 10:20 pm
JAN 2009 SFH (Van East)**Jan 21
Gross Sales 14,875,300
Units Listed 100
Units Sold 23
Sale Success Ratio 10%
Sales to Listings 23%
Avg Price/Unit 646,752 (-7%)
Active Listings 623 (+39%
JAN 2008 SFH (Van East)
Gross Sales 61,651,488
Units Listed 217
Units Sold 88
Sale Success Ratio 39%
Sales to Listings 40%
Avg Price/Unit 700,585
Active Listings 447
January 22nd, 2009 at 10:11 pm
JAN 2009 SFH (Richmond)**Jan 21
Gross Sales 10,025,000
Units Listed 136
Units Sold 14
Sale Success Ratio 5%
Sales to Listings 10%
Avg Price/Unit 716,071 (-8%)
Active Listings 665 (+51%)
JAN 2008 SFH (Richmond)**Jan 21
Gross Sales 62,718,835
Units Listed 253
Units Sold 80
Sale Success Ratio 37%
Sales to Listings 31%
Avg Price/Unit 783,985
Active Listings 438
January 22nd, 2009 at 10:09 pm
markx:
The condo pre-sale problem is IN ADDITION TO sub-prime crisis…
Let’s get straight on the cause and effect here.
The sub-prime crisis in the US was a result of falling prices. Prices had been falling for over a year.
Condo pre-sale defaults are also the result of falling prices.
Subprime and pre-sale defaults are early indicators of market decline, because the buyers involved were taking on the most leverage and/or had the least ability to pay. Such buyers helped to enable the rise in prices in many markets, but prices rose just as much and are crashing in markets which saw little of either.
The root cause of the RE bust in the US, Canada, and everywhere else is the same – the prices were too high.
The media and populace in both the US and Canada are still minutely examining the trees while ignoring the forest. They are not willing to accept the fact that the inflated RE prices were impossible to sustain in themselves and are looking for culprits to blame for the “problem” of falling prices, when in fact it was the inflated prices which were the problem and falling prices which are the solution.
January 22nd, 2009 at 9:49 pm
JAN 2009 Re BGV SFH+TH+APT (**JAN 21)
Gross Sales $230,099,893
Units Listed 2,628
Units Sold 440
Sale Success Ratio 10%
Sales to Listings 16%
Avg Price/Unit 522,954 (-11%)
Active Listings 14,577 (+45%)
JAN 2008 Re BGV SFH+TH+APT
Gross Sales $1,092,256,103
Units Listed 4,881
Units Sold 1,857
Sale Success Ratio 47%
Sales to Listings 38%
Avg Price/Unit 588,183
Active Listings 9,998
January 22nd, 2009 at 9:47 pm
http://www.courts.gov.bc.ca/Jd.....SC1778.htm
Interesting case of a West Vancouver home purchase that didnt’t complete because the buyer backed out. The plaintiff (seller) claimed damages for carrying costs of other debt plus lost revenue from the sale in a falling market.
January 22nd, 2009 at 8:57 pm
Vansanity:
“”It’s the last remaining piece of waterfront. It’s something we would all covet. This is it.”"
The mood of the consumer is getting downright ugly these days and rightly so. Seeing as half the city was against the Olympics anyway it wouldn’t surprise me if potential buyers boycotted this project on general principles just as retribution to the criminals who organized this Olympic Games fiasco. If I had any influence I’d organize a boycott of Millenium just so serve as a vote of non confidence in big business in this city.
Anyone notice that the propaganda machine has regrouped and is now broadcasting their predictions of a V shaped recession? Sharp recovery in a few months they say. I say that if I have anything to say about it (I don’t) it ain’t gonna happen, no recovery until people who are now in the denial phase are in the capitulation phase.
http://usera.imagecave.com/cam.....echart.gif
January 22nd, 2009 at 8:53 pm
Have you people lost your heads? Vancouver is an OLYMPIC city!
1) Chinese investors want to relive the magic of Beijing
2) Vancouver condos are the best in the world by far
3) Unlike in Miami our condos are made by mostly legal workers with proper training making them highly valuable for asian investors.
4) SUVs are always good investments.
January 22nd, 2009 at 8:27 pm
I thought I heard the CSOs were being upgraded as part of the Olympic Village, but I guess not.
Sorry, last post, this is totally off topic =)
http://www.env.gov.bc.ca/epd/r...../index.htm
“South East False Creek (SEFC) is the location of major redevelopment plans by the City of Vancouver, including shoreline development and an area which will house the Vancouver site for the 2010 Winter Olympic Athlete’s Village. Since 1990 there have been perceived improvements to False Creek water quality due to a number of initiatives undertaken by the City of Vancouver to reduce or eliminate direct discharges. The City of Vancouver and the Greater Vancouver Regional District (GVRD) are currently committed under the Liquid Waste Management Plan to continue working towards reducing or eliminating the remaining five combined sewer outfalls (CSOs) which discharge directly into False Creek. Raw sewage may also be directly discharged from pleasure craft into False Creek. This usage of False Creek has also grown significantly as there are now many marinas in the inlet and it is a popular moorage location. “
January 22nd, 2009 at 8:23 pm
That’s right, raw sewage only dumps into False Creek when we get heavy rains and the sewers overflow. Good thing that doesn’t happen very often.. (?)
This summer they dug up and upgraded the sewer overflow (CSO) that dumps into English Bay next to the Aquatic Center on Beach Ave along the seawall, which will hopefully reduce the closure problems in the beach area. Apparently the biggest one is at the foot of Clark Drive and dumps a LOT of overflow into Burrard Inlet (90 times the size of the English Bay CSO)
http://cat.inist.fr/?aModele=a.....dt=1573383
“There are currently 52 CSO outfalls in the region with some of the major outfalls having 100-150 discharge events/yr concentrated in the winter months”
January 22nd, 2009 at 8:00 pm
2:
Sinve you still don’t get it satv here is a video of what is about to happen to you.
Right now you’re excitedly waiting to catch the tree.
http://ca.youtube.com/watch?v=n8D-5XvXl_U
January 22nd, 2009 at 7:36 pm
I thought that COV was going to borrow 500,000,000 so why is it now 800,000,000 ? It keeps getting juicier and more expensive. Anyone want to hazard a guess as to how much of a run they take at 1.5 billion. Aren’t all these government boondoggles at least 2 to 3 times over budget?
If COV were sincere about leaving a positive 2010 legacy, they shouldn’t have made a completion guarantee to fortress.
They should have made a service guarantee to the citizens of COV. A commitment to improve the city’s facilities and services and deal with its problems. 1B could have gone a very long way towards making this city world class, not just in hype but for real.
There is a very real danger that they will claw back on services and people who make this city great.
Not the 2010 legacy they would like you to hear about.
January 22nd, 2009 at 7:02 pm
onthebenchfornow:
“anyone expecting a recovery in the second half of 2009 is going to be very dissapointed’
Great read from the economic side
http://articles.moneycentral.m.....-soon.aspx
January 22nd, 2009 at 6:46 pm
After reading this article I expect to see a lot more tech and telecom jobs to disappear. The wave hasn’t even crested yet, the news gets worse every day.
http://www.marketwatch.com/new.....792BD0C%7D
January 22nd, 2009 at 6:42 pm
vancouver is going to catch up with the 1980′s where real estate prices were in line with incomes. It seems like the uS is also heading towards this value matrix. Is the market fixing itself in the US. The affordability number is 2.9 X income, currently we are many multiples of that as they were in the US before the relentless slide.
Vancouver( and Canada) is said to be lagging the US by two years, this would appear to be a good indicator of where we’re going. IMHO values will continue to fall in Vancouver until basic economics reasserts itself.
http://www.marketwatch.com/new.....4A7C2F0%7D
January 22nd, 2009 at 6:31 pm
From COPE’s own website. So it isn’t a secret that raw sewage is discharged into False Creek. Now, exactly where are the discharge pipes, directly under the Olympic Millenium project?
“Clean Up False Creek Now:
Combined storm and sanitary sewer outfalls (CSOs) still pump raw sewage into False Creek with every hard rain. High levels of coliform bacteria in the sewage tainted waters are hazardous to kayakers, dragon boaters and all who use False Creek.
CSOs may have been good enough in 1907, when the system was built, but thousands of people now live around the Creek. And the Olympic Village is going up on the southeast shore, as well as a centre for kayaking and other non-motorized craft in the East Basin – the most polluted part of the Creek.
The City’s sewage replacement program calls for upgrading approximately one percent of Vancouver’s century-old sewage system every year, with a completion target set for 2050.
COPE will:
• fast track CSO replacement starting with those in False Creek.
” We need to make it a priority to clean up False creek by replacing the antiquated combined sewer outfalls that pump raw sewage and other pollutants into the Creek. Allowing raw sewage to flow into False Creek is no longer acceptable.”
David Cadman, City Councillor ”
January 22nd, 2009 at 6:21 pm
780,000,000 litres of raw sewage pumped into our ‘pristine bay ‘ everyday. Anyone thought about what happens when the tide comes in? It’s not called a flood tide for nothing.
http://thethunderbird.ca/2008/.....new-mayor/
January 22nd, 2009 at 6:16 pm
2:
So Vboom2 is trying a new handle, very sneaky.
Sorry pally , but the REBGV also has Surrey ( the Sewer) as part of the Fraser valley division.
January 22nd, 2009 at 6:13 pm
Stoxxman:
Who is Marcon?
January 22nd, 2009 at 5:50 pm
post # 71
Little known nasty secret about ‘world class’ Vancouver is that 90% of the COV raw sewage goes straight into the ‘pristine waters’ of English Bay.
===========================================
Well at least they are 10 % better than City of Victoria.
Where’s Mr Floatie when you need him?
Oh there he is…. right behind you !
http://www.youtube.com/watch?v=W-NWbzB3ut0
January 22nd, 2009 at 5:43 pm
bdk: I can make you understand it is that easy right here.
1.BUYERS CASE : Whyte(lawyer) plans to argue in court that Amacon(developer) didn’t properly file all of its disclosure statements. If his argument is successful, it could void the entire contract(Clear?).
2.LAW :Section 21 of REDMA allow buyers to rescind their purchase agreement with in seven days of purchase agreement and the provision of the disclosure statement,or the later of this date.(Means ACT found to be appropriate that allow buyers to walk away check what whyte has to say above)this developer is a troll to scare the walked away buyers or left over buyers,Developer is missusing his power as in most case buyers need to pay either to lawyers or they can just go back to developer to hold their agreement.
3.PROJECT : is in surrey while CBC and Bloggers are confusing with Vancouver,Surrey is not a part of REBGV.
4.PAUL : thought boom2 is not going to respond to his gibberish so he just put one line to divert attention,you can see the case is readily available through link on the main post then redma acts are posted in comment number super #7 then read what paul has to say in one line.If you are one of the buyers from the article you should be glad to read link posted in response but your response is totally apposite
are you the one who thumbs down that valuable links dumbo?
5.LURKER You being that long on these blogs you should better know those H&H and SOPHIA like projects where developer file bankruptcy because of the increasing construction cost but buyers did not back up from the original purchased prices means Vancouver is different from begining till future because hey Vancouver never mind
..
January 22nd, 2009 at 5:41 pm
Skye:
I should have read your post first, right on, kudos to you. The entire industrial track going past the parking lot and arounf the Telus Science center is also on the plan for future development, Don’t believe ANYTHING you hear from these clowns.
I can’t walk down that foot path in the summer let alone get in the water with a kayak, way gross.
January 22nd, 2009 at 5:38 pm
NO -LYMPICS:
Exactly, that North Side slime is a bitch to deal with. Wasn’t False Creek recently signed as having a dangerous coliform count beginning last summer ( remember this after they kicked the squats out so don’t blame them)and was stinking to high heaven. That story came out and quickly disappeared last summer BTW. Vanished hmmmmmmm, oh yeah, they’re building and selling condos. Lets not advertise if you scare our buyers with stories about stinking HUMAN FECES floating in thick rafts outside the front door.
Investigations were ‘ongoing’ but the problem has not been solved. I don’t know about the nabobs at COV , but the stink of human shit is not going to attract my money. Where has the media gone on this issue, they seem to have dissapeared convieniantly.
Maybe they should check the sewage outflow pipes coming down the hill from Mount Pleasent, I know theres a huge one ( six footer) running down Main street running raw sewage spilling into the harbour at the foot of Main. I don’t recall any sewage treatment facilities on the downtown map, do you? I know that Global TV has file footage of this, it’s no secret.
Where does all the poo poo go? Anyone ever thought to ask?
It doesn’t go to Richmond, where would they run the pipe? Theres no pumping station anywhere downtown to lift it over Little Mountain is there?.
Little known nasty secret about ‘world class’ Vancouver is that 90% of the COV raw sewage goes straight into the ‘pristine waters’ of English Bay. Anyone wonder why they keep closing down and posting beaches with ‘No Swimming’ signs along the E-bay beaches? It’s because they are very contaminated with RAW HUMAN FECES. World Class my ass.
Shitty smelling condos, nice thought on a hot summer night in my million dollar condo. LOL
January 22nd, 2009 at 5:35 pm
“Anonymous Says:
January 22nd, 2009 at 4:36 pm
arit:Deposit for presale was 25% before October 2007 and 20% since than.Keep on bringing whatever,what would you get in response? Education but that’s not gonna worth a penny for you because you are an stock investor who lost everything except bloggers ID.”
I am sorry, could you repeat that in English?
satv? Is that you?
Regards,
arit
January 22nd, 2009 at 5:29 pm
Speaking of developments gone awry, what WAS the end result of the mess at the “Riverbend” development in Coquitlam about two years ago?
Did the developers end up getting sued for breach of contract after they decided to increase the prices due to “rising costs”?
By the way, those shoebox houses are seeing price declines on a regular basis. So, maybe the mess that unfolded there WAS ALL FOR NOTHING.
Just like everywhere else, I suppose…
January 22nd, 2009 at 5:03 pm
Yes, last chance for a new False Creek development! Oh, except for the rest of the old Expo land that is currently a huge parking lot. What’s so great about False Creek anyway? It’s not like you can swim in it and its so polluted I wouldn’t even want to kayak in it. Typical false scarcity argument.
January 22nd, 2009 at 5:01 pm
Vancouverboom2:
Most days I think you’re just pretending to be the stupidest person alive because you think it’s funny but posts like that are so incomprehensible and ridiculous it makes me think you truly are as stupid as you sound!
January 22nd, 2009 at 4:59 pm
57 realpaul Says:
January 22nd, 2009 at 4:27 pm
I thought that COV was going to borrow 500,000,000 so why is it now 800,000,000 ? It keeps getting juicier and more expensive. Anyone want to hazard a guess as to how much of a run they take at 1.5 billion. Aren’t all these government boondoggles at least 2 to 3 times over budget?
==============================================
Not to worry realpaul..its the tenderloin section err the cut is tenderloin..err …oh WTF …COV taxpayer = your ass and your wallet is City Halls for the next few decades .
I think the City requires more funds to buy out Fortress… as well as paying penalty causes for accessing a NON Fortress lender, even if the lender ends up to be the COV.
Also re: the site..just paid a bit more attention and noted that the waterfront view condos face NORTH, do they not?
You will have it” made in the shade ” all right .. aka won’t get much if any sun…it will be cool/cold on that NORTH side ” where the sun don’t shine”…..and that North side will also be green with mold and mildew on the exterior.
January 22nd, 2009 at 4:49 pm
Had a 3rd data point:
I live in Kerrisdale, and just down the road sits an empty half built house. It has been under construction for what seems like 2 years. Last winter the wood framing sat there getting rained on, with no work done. I am not in construction, but I can’t imagine it is good for a framed house to soak up the rain all winter.
The framing is now covered, but it is looking dirty and old, and the yard is a mess. No work being done.
Kerrisdale is supposedly a prime area. Is it not possible to build this house and sell it?
January 22nd, 2009 at 4:41 pm
I seem to recall some of the developers were ticked off at specuvestors and had structured their sales agreements to stop quick flipping or re-assigning the agreements.
While it takes “two to tango”…these so- called savvy businessmen could have added their own checks and balances via simple contract language to weed out sincere/longer term purchasers (and not relied on Gov’t to do so ).
The developers simply turned a blind eye to what was inevitable . The whole real estate industry lobbies Govt for all sorts of purse-string loosening laws or amendments to existing ones. Now they cry waahhhhhh ??!!??
They are just as much to blame if not more, no sympathy whatsoever from this poster re: these RE pushers .
They gambled and gambled BIG time, and lost !
January 22nd, 2009 at 4:39 pm
Garth:
She must have had one huge downstroke to get a recreational mortgage at 62. Lots of cash down & collateral probably. Unfortuneatly both these ladies have most likely already lost a signifigant amount of unrecoverable capital. It’s a shame.
January 22nd, 2009 at 4:36 pm
arit
eposit for presale was 25% before October 2007 and 20% since than.Keep on bringing whatever,what would you get in response? Education but that’s not gonna worth a penny for you because you are an stock investor who lost everything except bloggers ID.
January 22nd, 2009 at 4:36 pm
It doesn’t pay to tell the truth in Skorea
http://news.yahoo.com/s/ap/200....._blogger_1
January 22nd, 2009 at 4:32 pm
A couple of personal data points from a discussion with a friend.
1. His 62 year old divorced mother just bought a recreational property. Or rather, took out a mortgage on a recreational property. She also has a mortgage on her house, and has yet to pay off her truck. She retires in 3 years, and has a fairly average paying job.
2. His sister, after taking many years to get out of credit card debt, jumped in and bought a condo in August.
Neither of these people has any financial discipline. I would say there is a near 100% chance that the mother is financially doomed, and the sister isn’t in a much better position, although she is at least young and will have time to recover.
I really feel sorry for both of them.
January 22nd, 2009 at 4:31 pm
they used to just throw the keys through the door
http://www.lehighvalleylive.co.....ylist=penn
January 22nd, 2009 at 4:30 pm
BTW: John
Hennesey Green development in Richmond is offering a MERCEDES with a condo purchase:
Not sure if that’s a car or the name of a hooker..
January 22nd, 2009 at 4:27 pm
I thought that COV was going to borrow 500,000,000 so why is it now 800,000,000 ? It keeps getting juicier and more expensive. Anyone want to hazard a guess as to how much of a run they take at 1.5 billion. Aren’t all these government boondoggles at least 2 to 3 times over budget?
http://news.sympatico.msn.ctv......;date=True
January 22nd, 2009 at 4:27 pm
50 realpaul Says:
January 22nd, 2009 at 3:50 pm
Anonymous:
I’m constantly amazed at just how many idiots there are in this town.
—————–
I’m NOOTTTTT !!!
January 22nd, 2009 at 4:25 pm
Re Realturd-ette Faith Wilson
Drove down Arbutus the other day, saw her logo on a vehicle.
her motto was
((( drum roll )))
“Faith Moves Homes”
January 22nd, 2009 at 4:07 pm
arit: Does anybody know if the developer would also be likely to recover legal and holding costs? Assuming the presale purchaser still had two pennies to rub together? I would expect the presale purchaser would be able to skip out on the GST at least?
January 22nd, 2009 at 4:04 pm
“Result:
Onni ends up with 525,000.
Inspecufestor A dies of starvation.”
That’s about it. Pigs get slaughtered, stupid pigs most of all.
January 22nd, 2009 at 4:03 pm
Mathematically, it’s possible she has buyers. And it’s possible that of the 6 houses she wanted to show, 3 were pending. But she doesn’t say how long they’ve been pending. And “pending” isn’t “Sold.” Buyers back out of deals before conditions are waived. And buyers back out of deals after conditions are waived. Especially with single family homes. What seller, already up against the wall with debt and an unsellable house – is going to drop $10K on a lawyer to sue a buyer?
The situation in Victoria, if anybody cares, is actually worse than the bleak numbers suggest. Prior to the meltdown, most new homes are sold without ever being listed through the real estate board. In other words, you had record sales Plus new homes sold directly from the builder to the buyer.
But a quick search of the dwindling sales shows that many of the reported board sales have been new homes, where builders have relented in listing their houses where before it was unnecessary. The non-new sales are character homes within 10 minutes of downtown.
I found one – 1 – sale of a non-new home in Sooke since mid-October. Out of 89 listings.
Those are some bad odds.