Robson Street ‘surprisingly affordable’
Surprisingly affordable to lease retail space that is. Colliers has released their global survey of retail space lease rates and the most expensive places in Canada are in Toronto and Montreal at about $300 us per square foot.
Robson street in Vancouver came in 51st in the survey at a surprisingly affordable $196.08, which looks even cheaper when compared to what I like to refer to as our ‘sister cities’ New York and Paris (which are cities just like Vancouver, but bigger with more money.) Both those cities topped $1,250 per square foot, but then they don’t have the HST.
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June 10th, 2010 at 3:06 am
If we pool enough resources together, Pope can open a Vancouver Condo Info Centre on Robson St. Revenue is to be generated from hosting seminars to the bailing bulls. paulB can be the expert consultant realtor. The scrolling LED sign at the front will have LIVE updates of inventory count, daily stats, and CULT index. Inside the VCIC there will be a Vancouver RE coaster simulator, in 3D and sporting full hydraulic control for complete immersion (here’s an example http://www.youtube.com/watch?v=c3CaoeV9g0E )
June 10th, 2010 at 5:01 am
It’s an average of $330 in Singapore’s prime shopping district, and the tenants are the likes of Prada, Miu Miu, Burberry, Dolce & Gabbana, Cartier etc.
Nothing like a Footlocker or Red Robin to be seen so Singapore still has a way to go till it becomes a world class city like Vancouver, I guess.
June 10th, 2010 at 6:47 am
Wow! Larry’s Fairview attatched numbers are epic:
Average and Median Prices of Sold Properties
May/June’s Average Ask price decreased to $472,743 from April/May’s $613,082.
The Median Ask price in April/May was $599,900 but decreased to $451,850 in May/June.
The Average Sold price in the April/May was $606,469. This dropped to May/June’s average sold price of $466,493.
The Median Sold prices reacted similarly with April/May’s price of $595,000 sliding to May/June’s $439,500.
http://www.yattermatters.com
June 10th, 2010 at 7:13 am
@joycer: Interesting numbers and definitely bearish. However, this is a good example of why using averages is misleading. I suspect the reason for these large drops is a combination of lower prices for a given quality of house, and lower quality housing being transacted. It’s nice to be able to separate the two.
We shouldn’t take this as evidence that particular properties are down 20%+.
June 10th, 2010 at 7:15 am
Real Estate Agents Defrauding Banks in Short Sales
http://www.ritholtz.com/blog/2.....ort-sales/
June 10th, 2010 at 7:53 am
@Van MD:
Your retarded idea of pooling resources together is meant for middle class bagholders who can’t afford a house and bitch night and day hoping for a market crash.
I got a better idea for you, start a new religion. Call your god “Bear”, then you bears can pray together in your retard bear mask. On Easter, you can roll out a pig and fry it, sacrifice it to the bear. Pig represents the landlords for being rich and fat from sucker renters. Start chanting, “Burn those pigs”.
June 10th, 2010 at 8:18 am
@VHB:
VHB, I was thinking something similar and posted the following on Yatters (currently waiting for moderation)
“Quite the swing. I’m interested in the Avg Sold asking price. Are these huge price reductions or simply lower-end stuff getting sold?
Larry, can you share a few examples of sales showing their original asking and what reduction it took to get them sold.
Are low-ball sales happening or sellers just pricing better?”
June 10th, 2010 at 8:33 am
@Van MD: Bear this why you rent forever. No business sense. Only loser bear go into your VCI CULT store. Loser bear have no money.
June 10th, 2010 at 8:37 am
@Supraboy:
Ha Ha Ha Ha……………………Thanks for your defense of Vancouver RE,we need more intelligent bull to overwhelm this site with optismistic ideals and insights.The bull savoir will come in another 2000 yrs with Jesus’s bone.
June 10th, 2010 at 8:46 am
In the survey of streets I wonder where they drew the line? While Robson isn’t the longest street in the world the high value real estate would seem to be just a few blocks. Maybe this is true with all the surveyed streets but the numbers could be misleading given the changes in desirability the further away from Thurlow and Robson you are.
Still it shows what business can bear and what the demand is along Vancouvers biggest retail strip. Not the sign of a big retail powerhouse city. But not surprising considering the realities of a city with severe affordability problems for the average person.
June 10th, 2010 at 9:15 am
Whats wrong with blocking IP addresses of trolls? Supraboy obviously comes here looking for a fight (a virtual fight). If this were a real discussion, in a coffee shop lets say, he would not speak like he does here. Heck he wouldnt even show up, hes probably an internet only person with no friends and major debilatating issues socializing with real people.
This blog gets enough traffic that you can afford to block some people. And I know his IP can change but that doesnt really happen on cable modems these days.
Maybe force people to use their facebook or twitter logins?
getting on topic, i think South granville would cost more than robson, all it is is high end shoe stores and art galleries.
June 10th, 2010 at 9:24 am
The Fairview numbers may suggest that we’re scraping the bottom of the barrel for buyers if only the low end garbage is selling now.
Have the imaginary busloads of wealthy Chinese gone home to lick their wounds as their own property and stock markets get slaughtered?
June 10th, 2010 at 9:29 am
@CH: Why wouldn’t I speak the way I do in a coffee shop? I’d probably be laughing at you bears as to why you people are so negative in life.
I can’t understand why there’s so much doom and gloom being spread here for +2 years yet none of your so-called bearish predictions came to fruition. Most of the bears here have waited long and hard. How’s the hibernation going so far? If you scroll back to recent history of bearish talks, even right before the olympics, every bear predicted a market crash right after. What happened to that?
June 10th, 2010 at 9:31 am
@Best place on meth:
“The Fairview numbers may suggest that we’re scraping the bottom of the barrel for buyers if only the low end garbage is selling now.
Have the imaginary busloads of wealthy Chinese gone home to lick their wounds as their own property and stock markets get slaughtered?”
My friend just had a bus drop off 40 chinese people at their house to look at it. Her house was listed for 2 weeks and was sold immediately for +$1mill in marpole. How’s that for scraping the bottom of the barrel. I get info from real people unlike you bears. Bears feed off each other to comfort themselves in a cave.
June 10th, 2010 at 9:33 am
While some on this blog do not find average prices useful, they are the only single number that provides an overview of the entire market.
Average prices tell you how much money in aggregage changed hands in a period of time. Falling averages may be due to falling prices across the board or a big decline in buyers of high price properties.
Either way, a falling average price tells you that the market is heading down. It tells you that there is less money going into real estate.
Less high end property sales and falling prices across the board mean the same thing: the flow of money that is propping up the bubble is withering.
June 10th, 2010 at 9:33 am
You people shouldn’t be bickering. Anyone going to Europe in the summer? It’s 1 CAD to 1.24 EURO today. Assuming the Euro tanks more, it’s time to load up properties in Europe.
So far, I’m enjoying the 1 CAD to 7.6 HKD.
June 10th, 2010 at 9:51 am
@Supraboy:
“My friend just had a bus drop off 40 chinese people at their house to look at it.”
Supra, finally you’re making sense.
Guess those 40 people living in the million dollar house might get a bit crowd but that’s one way to afford the mortgage payments.
June 10th, 2010 at 9:56 am
@VRENGD: I don’t think I said average prices aren’t useful. I said that they shouldn’t be used as an indication of price changes. The benchmarks are much better than that.
The average does contain information–in this case it suggests that it is the lower end stuff that is moving.
We get information from both measures. The point is to use the proper measure to answer each question at hand.
June 10th, 2010 at 10:00 am
@CH:
……Supraboy obviously comes here looking for a fight (a virtual fight). If this were a real discussion, in a coffee shop lets say, he would not speak like he does here. Heck he wouldnt even show up,…….
He couldn’t afford the coffee!
June 10th, 2010 at 10:00 am
@VRENGD: The amount the average moved is certainly a >1sigma event. I think you’re right the move has some decent chance of being significant. I think that while it likely shows some price weakness it attests more to the mix of properties being sold. Don’t know what a change of the mix means, though.
June 10th, 2010 at 10:01 am
Don’t get so riled up bears, bulls are here to provide some jokes on this Debbie Downer blog.
Bears cheering for this city to fail and bankrupt all homeowners, just so they can buy. Sad.
June 10th, 2010 at 10:05 am
@chip:
The designer stores are on Georgia, not Robson.
June 10th, 2010 at 10:32 am
@Supraboy:
“I get info from real people unlike you bears”
Obviously you’re speaking to the wrong people. Aren’t you the fucking idiot who said Hong Kong’s unemployment rate is 3%?
http://www.hketousa.gov.hk/usa.....51810.html
June 10th, 2010 at 10:36 am
@Supraboy: Math is not your forte. 1 CAD is 0.8 EUR today.
June 10th, 2010 at 10:40 am
Bear I will give one piece of investment advice only. Listen carefully and pay attention. When Jeff Rubin announce that he will write book about peak gold it’s time to short gold. Trust me I made over 100k last time he announce book deal.
June 10th, 2010 at 10:41 am
Everybody enjoying the weather today? Feels like during the Winter Olympics.
Summer is officially starting in 11 days…
June 10th, 2010 at 11:04 am
Now landlords have to offer free food to get prospective tenants to their open houses. NICE
http://vancouver.en.craigslist.....01518.html
“Come along and meet the team! Complimentary drinks and nibbles will be offered!”
June 10th, 2010 at 11:06 am
bulls are active today. Good sign. Bulls on panic mode. keep it up bull. Never have I voted down so many dumb posts in one day before.
June 10th, 2010 at 11:17 am
@Supraboy:
Would it be this bus by any chance?
http://foreclosurebustours.com/
Jumping the gun a bit, but just wait.
June 10th, 2010 at 11:17 am
I have been receiving mls listings update around Richmond Hill and Markham from a realtor in Toronto. Most of the listings I am getting are new or relisted expired listings or listings with status PC or price change with price dropping. I think it is worse in more bubbly vancouver that is why bulls are panicking.
June 10th, 2010 at 11:29 am
@No Longer Looking:
Good find with that mainstreet equity rental ad.
mainstreet equity has dropped prices for some fully renovated two bedroom units in Abbotsford down to $619 a month…
Rental vacancy in Abbotsford is off the charts. 6-8% for apartment buildings, and more like 11-13% (anecdotal, from prop managers)for the owner landlord stuff.
Mainstreet equity is a publicly traded company. MEQ.TO
June 10th, 2010 at 11:37 am
A bit off topic, but had to share this gem:
MLS: v817990
This was purchased for 745,000 and then sold in April ’08 for $719,000 – the owner lost $25K + real estate fees. What makes me laugh is that the owner who bought for $719,000 is now listing at $699,000! Everyone who buys this place loses money!
June 10th, 2010 at 11:44 am
Oh…and here is the link for the 619 in Abbotsford
http://abbotsford.en.craigslis.....71607.html
two years ago, it was near impossible to find even a 2 br basement suite for less than 850.
Here’s Another example of low yield. My friend in Kelowna is renting a condo (investor pre-bought at 1.2 mill) listed currently at 899k (not one single showing in 14 months). This is a 2000 square foot condo on the 14th floor with 1000 sq feet of decks and top notch finishings.
Total rental cost? drum roll………$1700………clap
take off 450 for strata, and (guessing) 400 for property tax and any other incedental expenses, and we are at 850 a month net yield. This landlord is bringing in 10200 yearly on an initial investment of 1,200,000. This landlord is currently getting less than one percent return on investment.
Another perspective is NPV analysis. What is the present value of 10,200 a year, 7% expected return on capital (assuming the rent is growing by 2% annually into eternity)? Drum roll………$204,000……
Talk about a “slam dunk” investment. I guess that’s how the rich get richer. I should tell my friend to hurry up and buy it for 899k so he can start “building equity”
June 10th, 2010 at 11:59 am
@“A-sharp” Accountant: That is some SWEET number crunching.
I think it moved.
June 10th, 2010 at 12:05 pm
@“A-sharp” Accountant:
Wow, that’s quite a good deal on the rental in Kelowna! I also know someone there who is renting out her property at a loss (not a fancy rental like the one you mentioned!) She bought for about $250k (add on another $17k CMHC fee for not having 25% downpayment) the rent is now $1100/month (she tried to rent it at $1400 but it sat vacant for more than 6 months). Her mortgage is $1450/month, strata $200, property tax $125. Oh and the balance of the mortgage is around $260k, so if she sold today (similar units are selling for $230k) she would owe the bank. Underwater. A realtor in Kelowna told me that there are many many vacant condos in Kelowna, bought by “investors”. I say Kelowna will be ground-zero for condo losses in the country.
Interestingly, I know several wealthy people in Kelowna, those with incomes of over $150k and these are NOT the people who’ve jumped into real estate. The ones who’ve jumped in the most are the 30-somethings in debt up to their eyeballs, and babyboomers with all their equity in their homes. It’s scary!
June 10th, 2010 at 12:05 pm
40 Chinese on a bus tour. That sounds like Sunday afternoon at the Superstore when the mall rats bring their multi generational families to crowd the aisles with meandering uselessness. Its not like they are each buying a can of soup, the Chinese just love to congregate, its a cultural thing. Its either dim sum or mall walks , you never see these people take their kids to the in the park or walking. I’ve been in plenty of houses where there were at least twenty people living under the same roof, so fourty on a bus probably represents grandmas sex day and she’s swept the kids out of the house to get jiggy.
Meanwhile, Carneys painting himself into a corner and by talking out of both sides of his mouth is proving to me, at least, that he’s shit scared and out of options, the debt devil and the deep blue sea of fiscal reality.
1)http://www.financialpost.com/news/sees+loonie+becoming+reserve+currency/3137130/story.html
2)http://www.financialpost.com/news/predicts+fastest+growth+decade/3135881/story.html
He has painted the loon as stable against the backdrop of basketcase economies. By hiding the fact that Canada has as a high a debt to GDP ratio as all the rest he has attracted unwanted attention and will be forced to deal with an inflow of hot money. This will drive the loon up while also having to face the higher rates of competative cash at the same time. Foolish move Mark.
The economy is being advertised as growing, this is a sham advertisement to continue the spending circle, consumers are already tapped out to the tune of 148% of income. The ‘hot’ economy will force up rates yet agin due to the inflation already in the system. I was at the grocery store today and if meat prices continue to go up as fast as they are then they will have to put the steaks under glass and post security guards. Quite a liars conundrum our fearless leaders have created.
June 10th, 2010 at 12:10 pm
@chip: I think the article was poorly written and confusing. It makes no mention if the average lease rates were “gross” or “triple net.” If the rates were triple net, taxes/main/etc could add significantly to the overall $/sq ft. When I checked 3 years ago, Robson/Bute corners were going to $225/sq ft triple net.
I think $200/sq ft+ is already nuts (at least for Canada). You would have to sell an awful lot of $69 shoes or $5 lattes to make it back. What is already apparent, is that many chains are willing to lose money on flagship locations, for PR purposes (most 5th Ave & Mad Ave flaships high end boutiques lose money).
Let’s see what happens to those lease rates when many 5 & 10 year leases, which were signed during peak credit, run out.
June 10th, 2010 at 12:14 pm
Uh oh bears, financial post is like reading horror show. Markets up, RBC says Canada growth to be strong, forget about double dip, time to hibernate. Time to start thinking about new excuses why market keeps going up up up like kite to moon.
June 10th, 2010 at 12:15 pm
@joycer: Month numbers can also get skewed quite a bit by urgent deals.
I noticed in 1 building (Fairview-FC) a few weeks ago, a unit sat on the market for $1.05 million, and then suddenly dropped to $699k, finally selling for $720k. The sellers had some personal health issues (these were not flippers, nor did they need to sell at peak pricing) and just wanted to move on (they seemed like nice people, for what it’s worth).
June 10th, 2010 at 12:16 pm
@YLTNBoomerang:
“MLS: v817990″
Asking price is $570/sq.ft., way below what a yaletown condo should command. Anyone know what’s wrong with this building? Must have a pending assessment or be near a halfway house or something.
June 10th, 2010 at 12:23 pm
Here’s one in our hood.
V832543
Listed at $725′ish (don’t remember exactly). Then dropped to $618K. Sitting for couple of months, now dropped to $598K.
Lots of sellers in East Van that have no concept of what their shack is worth.
June 10th, 2010 at 12:36 pm
anecdote: An acquaintance has been killing himself the last 10 years. He sleeps 4 hours a night and works all day. His reason? “I HAVE to make $100k a year. I have 3 mortgages to pay.”
Sure he has tons of equity, and I’m jealous of that. He could sell now and live comfortably. But he doesn’t. What’s the point of building equity if you don’t enjoy life?
June 10th, 2010 at 12:42 pm
@The other Garth: Yeah bear why work hard when you can rent… forever.
June 10th, 2010 at 1:07 pm
@YLTNBoomerang:
This was purchased for 745,000 and then sold in April ‘08 for $719,000 – the owner lost $25K + real estate fees. What makes me laugh is that the owner who bought for $719,000 is now listing at $699,000! Everyone who buys this place loses money!
Where are you getting your sale info from? The last sale registered on the LTO system is from August 2005 for what looks like $490,000.
@Anonymous:
Anyone know what’s wrong with this building?
Could be just that one townhouse. Windows on the street side only. Lowest level shares a wall with one amenity room, and second level shares a wall with two amenity rooms.
June 10th, 2010 at 1:09 pm
@“A-sharp” Accountant:
The return on investment in your example drops even more when you account for interest expenses on his mortgage. The yield may even go way negative for the intial decades of the mortgage where you pay mostly interest.
June 10th, 2010 at 1:12 pm
@Anonymous:
That should be “second level shares TWO walls with two amenity rooms.”
June 10th, 2010 at 1:14 pm
@“A-sharp” Accountant:
“Mainstreet equity is a publicly traded company. MEQ.TO”
Just had a look at their chart – this one is ripe for a short.
June 10th, 2010 at 1:17 pm
@Purp1: I would pay $500k JUST for those fabulous trees in front of that sweet listing. They look like expressive eyebrows over the house’s eyes/windows!
Also, I hope the painting comes with the place. People aren’t making paintings like that any more.
WOW!! What a lifestyle! I’m sold!
http://www.realtor.ca/Property.....ID=9547915
June 10th, 2010 at 1:20 pm
But aren’t these just absolute numbers and not adjusted for avg income/revenue for retail fronts?
Study doesn’t have much meaning otherwise…
It would be like saying DT condos in Vancouver are cheap because they are 1/2 the price of a DT condo in New York.
June 10th, 2010 at 1:25 pm
@superduperbulltime: “Yeah bear why work hard when you can rent… forever.”
I agree. If the ownership premium is so high that it affords me a carefree lifestyle, heavily subsidized by people toiling away because they “have to own”, why wouldn’t I take that deal? After all, I can work hard too if I wish, and I can get something better with my money. Hell, I can buy property all over the world except possibly in Australia.
It seems we have now reached the point where the rats are running the race with no cheese.
June 10th, 2010 at 1:33 pm
@Best place on meth:
MEQ hardly has a presence in Abbotsford. Most of their rentals are in Calgary and other parts of Alberta. They only recently got into BC. MEQ isn’t going to crash due to rental incomes and occupancy rates. If the stock corrects, the cause will be interest rates because they are extremely levered. Their cash flow would likely be negative (if it isn’t already) if it were not for falling interest rates. If you were to do the math, my bet is that they would have to start selling assets to generate cash should interest rates go up.
All that said, I haven’t looked at their numbers for six months so do you own due diligence. I could be wrong.
June 10th, 2010 at 1:37 pm
Here’s another listing in east van
V825206
original list price: $1,999,999
after first reduction: $1,225,000
latest asking: $1,149,000
IMO still overpriced. We’ll see what the market will bear.
June 10th, 2010 at 1:42 pm
@rubberduckie:
Those trees couldn’t possibly look more phallic, unless they circumcised them and placed a large tire under each one.
June 10th, 2010 at 1:46 pm
@Supraboy:
“My friend just had a bus drop off 40 chinese people at their house to look at it. Her house was listed for 2 weeks and was sold immediately for +$1mill in marpole.”
Oh, no!!! Why is your friend sellling?!? Doesn’t she know Best Place On Earth ™? Why didn’t you tell her Vancouver RE Only Go Up ™? I hope she is putting it all into highly leverages presales (“I buy tree, huzzbah buy tree”).
June 10th, 2010 at 1:59 pm
Goodtimes
New Listings 163
Price Changes 115
Sold Listings 56
June 10th, 2010 at 2:25 pm
@LY: “bulls are active today. Good sign. Bulls on panic mode. keep it up bull. Never have I voted down so many dumb posts in one day before.”
The bulls don’t know about Silver Thursday or other great events in market history that turned billionaires into paupers. If it can happen to billionaires, it can happen to Vancouver RE “investors”. Well, they’ll find out soon enough.
Hey bulls, just for fun, read:
Silver Thursday (Wikipedia) or Nelson Bunker Hunt (Wikipedia).
June 10th, 2010 at 2:26 pm
@CH: “Supraboy obviously comes here looking for a fight (a virtual fight). …. hes probably an internet only person with no friends and major debilitating issues socializing with real people.”
John Horton personified
June 10th, 2010 at 2:26 pm
@paulb.: Great numbers. However i am still quite disappointed about inventory numbers. We have been stuck around 18,500 for weeks now. By now I was expecting to be well above 19,000.
Any reasons for the sudden slowdown in inventory growth? Just higher sales? Much lower listings?
June 10th, 2010 at 2:27 pm
@Best place on meth:
Agreed…that is why I even mentioned the ticker.
June 10th, 2010 at 2:30 pm
@Dan in Calgary:
I think I saw a documentary about that once. Dan Aykroyd and Eddie Murphy were in it.
June 10th, 2010 at 2:34 pm
Okay the whole bull complaint about entitlement is just that, BULL.
Nobody is saying “I deserve to be able to buy detached house for $400K”.
All it boils down to is this… why would I want to pay $4000/month to own/live in something I can rent it for $2000 a month?
Until rents start pushing up, STFU!
June 10th, 2010 at 2:49 pm
@domus: Here are the inventory gains in June for the last 4 years:
June
2006 253
2007 146
2008 2075
2009 -373
June typically sees things start to slow down. We started the month at around 18500. We should get to 19K, but 20K might be a stretch.
Sales are running higher this year than in 2008. Daily listings are a bit lower than June 2008.
In July and August, things just really slow down both for listings and sales. I suspect we’ll bounce around 19K-20K. We might get a new boost for the Fall rush, but it won’t be super large–at most we’ll push to 22K or so, before listings start to get removed for the year.
June 10th, 2010 at 2:52 pm
@domus:
I think it has to do with the HST, there’s a last gasp effort going on to try to buy before it kicks in, siphoning demand from the summer months.
June 10th, 2010 at 2:53 pm
@domus: Here are June averages for daily sales and listings.
2008: 119/315
2009: 195/238
2010: 159/288**so far
June 10th, 2010 at 2:53 pm
@VRENGD:
I see what you are saying. You added the second step. I was looking at the investing decision, you are looking at the financing decision.
One simplistic (somewhat hueristic) method of evaluating investment opportunities is as follows:
Step one—determine expected return on invested capital
Step two—-compare return with the cost of capital (WACC) (debt or equity)
Step three—reject investments that show negative (tax adjusted) overall return.
I think that guy (and my landlord for that matter) forgot step three
June 10th, 2010 at 2:57 pm
YLTNBoomerang –
That place for $699k was purchased for $490k, where are you getting other info from?
June 10th, 2010 at 2:59 pm
What an ungly day (and year), rain, rain and more rain…. what, more asians wants pay millions to move here from their sunny, warm country. And pay 50% of their income for taxes. By the way saturday is tax freedom day
http://www.financialpost.com/p.....id=3111497
June 10th, 2010 at 3:14 pm
@realpaul: “Quite a liars conundrum”
as in Greece and Goldman Sachs vs EU
June 10th, 2010 at 3:26 pm
@Supraboy:
Supraboy and the rest of all SupraDupraCrap,
You are 100% right whatever you said. For example I’ve heard that China Eastern Airlines is buying all the remaining Concords and will have non-stop flights from mainland China to Vancouver just for the Rich-Chinese-Condo-Buyer (ticker: RCCB). Passengers will be able to bid up condos at supersonic speed on 60,000 feet (18,000 m) and all the papers to be signed will already wait for them in VIP lounge at the Richmond airport. Plan is to have over 4000 flights per year or approximately departure/arrival every 2 hrs. For those who buy tree up in the air and take husbah (who also buy tree) with them will get car parking discount at the airport.
June 10th, 2010 at 3:43 pm
@realpaul: “Quite a liars conundrum”
as in Greece and Goldman Sachs vs EU@anonymous: “original list price: $1,999,999
after first reduction: $1,225,000
latest asking: $1,149,000″
Diminishing G(reed) Returns
June 10th, 2010 at 3:54 pm
@VanRant:
If you used the same methodology as the FI to compute “tax freedom day” for Saudi Arabia it would probably fall around Christmas Day.
Figure out why and you’ll understand why they get the results they do for Canada.
June 10th, 2010 at 3:56 pm
just for giggles
for $850,000 in Monteray California
http://www.californiamoves.com.....;WT.srch=1
…and… for $828,000 on East Broadway in vancouver
http://www.realtor.ca/property.....Id=9436590
sheesh
June 10th, 2010 at 3:58 pm
anoymous, “@Dan in Calgary: I think I saw a documentary about that once. Dan Aykroyd and Eddie Murphy were in it.”
Don’t know that, but (of course) you’ve got it right. Check this link out for an enlightening narrative which ends with:
“The message of the Hunt brothers story is a lack of financial education can be the downfall of any (silver) investor -— even billionaires.”
June 10th, 2010 at 4:07 pm
New Listings 228
Price Changes 138
Sold Listings 80
quiet day
June 10th, 2010 at 4:12 pm
@Hovering: Amazing isn’t it? Sadly there are so many local idiots and RE-ligious fanatics that don’t see anything wrong with that, kinda normal stuff it’s Vancouver…
June 10th, 2010 at 4:12 pm
@paulb.: It’s the rain! Remember if real estate slows, we are to always blame the rain (or snow, hail, or any other bad weather including too much sun)!
June 10th, 2010 at 4:15 pm
@wally: I think that’s part of what we can glean: if Robson stores were bringing in New York revenues, they’d more easily sustain New York rental prices – and Robson is the epicenter of our retail activity.
June 10th, 2010 at 4:39 pm
Hovering -
That was really depressing on this rainy day.
Why are houses so ugly in this city?
June 10th, 2010 at 4:41 pm
Another net 150 listing day with a raft of reductions.
Ho Hum, this crash is becoming so obvious its not even fun anymore. Soon all of Vancouver will say:
“we knew it all along but were holding because it will come back next year”
McLovin
PS – 19,500 by the end of June?
June 10th, 2010 at 4:41 pm
Sales will most likely slow further in the second half of the month and for the balance of the year. Notwithstanding a numerous media reports about the housing bubble, news of the extent to which listings have increased and prices are falling has not been fully broadcast and absorbed by the public. Once May’s numbers are reported and the public becomes aware of the large volume of price drops, sales will pull back further. The irony of robust economic news like that released by RBC today is that it provides impetus for further rate increases which will only hasten the crash of the residential market. A perfect storm. Wage inflation is a long way off. Also, the immigrant investor program will be doubling the required investment effective July 1, 2010. That will reduce the number of “business investors” coming from China.
June 10th, 2010 at 5:05 pm
@Tony Pepe:
Once again, I would love to see that happening. But I would not be counting much on it. This for simple reason that we have a very clear example of 2009 revival after terrible 2008 crash. Joe Bloke, who has no idea of govt intervention thru CMHC and teaser rates, would expect the market to revive once again and hence would be reluctant to drop price too much this time. Unless the Flaherty-Carney-Harper trio pull another rabbit outta their hat, by this time next year there would be Armageddon as people would realize that this drop is here to stay for a lonnnnnnng time.
Having said so, I sincerely wish you are right and I am wrong.
June 10th, 2010 at 5:07 pm
@Tony Pepe:
“Once May’s numbers are reported and the public becomes aware of the large volume of price drops, sales will pull back further. ”
What makes you think the public will be aware of the number of price reductions? Most will just be looking at MoM sales prices.
June 10th, 2010 at 5:12 pm
Jeff, not only houses are ugly in Vancouver but they are very poorly built as well. I live at the Woodward’s, in 10 years this building will be barely good enough for the locals, and by locals I mean the street residents of the hood.
June 10th, 2010 at 5:14 pm
Thanks a lot for the info VHB! And everybody else!
I reckon the big difference from 2008 are the sales. Yes, it might be the HST. But it could also be that some people are lured by small price drops.
Crazy how people see RE purchases as differently from any other purchase they make. This level of sales is crazy.
It will crash in time.
June 10th, 2010 at 5:15 pm
@Hovering:
just for giggles
for $850,000 in Monteray California
http://www.californiamoves.com…..;WT.srch=1
…and… for $828,000 on East Broadway in vancouver
http://www.realtor.ca/property…..Id=9436590
sheesh………
Ya, but think how much you save on sun screen by living here!
June 10th, 2010 at 5:28 pm
New Listings 265
Price Changes 167
Sold Listings 99
June 10th, 2010 at 5:34 pm
18,741
June 10th, 2010 at 5:34 pm
@Hovering: I shouldn’t have been sipping coffee when I clicked on the link to the Vancouver special. It does have new laminate flooring with new bathroom and light fixtures! In that case, it’s a steal. What made me snort my coffee was a typo about the “spEcious” deck. What an apt description for the whole of the Vancouver RE market–specious.
June 10th, 2010 at 5:50 pm
nice to see you back inventory, you were dearly missed
June 10th, 2010 at 5:52 pm
@paulb.:
Paul,
Is there some sort of discernable pattern to the sales and list numbers that occurs on a weekly basis? I’ve noticed that the numbers nearing the end of the week are substantially more bearish than at the beginning.
I’m new here, so I may be just seeing things.
June 10th, 2010 at 6:01 pm
18,750 not bad.
June 10th, 2010 at 6:14 pm
@“A-sharp” Accountant:
No pattern has jumped out to me and I no longer track these numbers anywhere. I wouldn’t expect an overly strong correlation personally. Why not track them if you like and we could check out your data after 1 month. That should be a decent amount of time to see if there is a correlation.
I have noticed that whatever the number of sales that come in there are almost always 100 or more listings added than sales. I cannot remember a day where sales came even close to the daily listing count.
June 10th, 2010 at 6:18 pm
@Tony Pepe:
“Also, the immigrant investor program will be doubling the required investment effective July 1, 2010. That will reduce the number of “business investors” coming from China.”
I’m unable to find any information on this change.
June 10th, 2010 at 6:39 pm
@Tony Pepe: @Tony Pepe: I can’t find any info on this change either… Tony Pepe – can you provide a link? This would certainly put a wrinkle in things.
June 10th, 2010 at 7:09 pm
Robson Street ‘surprisingly affordable?’ Well, between the posers, bravado, homeless and junkies, has anyone ever actually seen someone *buy* something there? I haven’t. I’m surprised the retailers arn’t paid to take up space.
June 10th, 2010 at 7:18 pm
@CH:
Blocking IP = Groupthink
Besides, anyone with mediocre computer knowledge can instantly generate a new IP, use a proxy server, etc.
June 10th, 2010 at 7:18 pm
Just in time for the next wave of wealthy Chinese hordes coming to buy all our real estate – it’s VIRTUAL TOURS!
That’s right, no more suffering the indignity of yet another bad flight across the Pacific http://www.youtube.com/watch?v=lpn7bem2VS8 only to sleepwalk their way through three boring viewings and purchases, follow by husbands three boring viewings and purchases.
Now they can sit back in their plush office overlooking the sweatshop floor and browse properties in their full glory, at their leisure. They don’t even need to be wearing pants.
As an added bonus they can online chat with the seller in real time about the properties features, the neighborhood, nearby schools and dim sum joints, recommended demolition companies, etc…etc….
And it’s not just the rich offshore Asians. Lazy locals and shut-ins who can’t or don’t feel much like going to an open house can use it too.
Yes, the future is here, and another 50% increase in Vancouver real estate prices is all but assured.
http://www.virtual-vancouver.com/albrighton/
Smiles everyone, smiles!
June 10th, 2010 at 7:20 pm
@Supraboy:
……..My friend just had a bus drop off 40 chinese people at their house to look at it……
================
You’re confused dude, that was the Shriner’s Circus in town. Try to keep up, OK?
June 10th, 2010 at 7:27 pm
@No Longer Looking:
…….Now landlords have to offer free food to get prospective tenants to their open houses. NICE……..
+++++++++++++++++
Yeah, but its Surrey. With that in mind, this would kill any appetite.
June 10th, 2010 at 7:40 pm
Yes, but BPOM, you are missing the best part of the whole virtual Albright experience: You have to download some plugin (titled vww which he tries to pass off as Virtual Vancouver but is actually Virtual World Web) which deceptively comes from…. wait for it… a virtual adult porn shop! Check it out, the file you download come from these guys : http://www.utherverse.com/index.aspx
Oh, yeah, now I am utterly (no longer virtually) convinced realtors are sleazebags.
June 10th, 2010 at 8:24 pm
http://roadto2010final.blogspo.....d-cup.html
Screw Vancouver!!! After the World Cup South Africa will be smokin’!!! Rich Asians and displaced Europeans will be lining up to buy real estate! Everyone will be “coming here.” Corrugated cardboard shacks selling for 1000 Rand per square foot!! I’m off to Capetown to buy a shanty town or two. Let’s face it, this AIDS infested war zone sees a bit more sunshine than our own DTES.
June 10th, 2010 at 8:47 pm
Sweet. We just found a place to rent for $1350/month. A similar unit down the hall is on the market for $450,000. If I put $50k down it would cost (at 5% interest, 35 year amortization) $2018/month. Plus strata. Plus property tax.
Why buy when you can rent?
June 10th, 2010 at 8:48 pm
Was Mr. Gordon Campbell in Spain?
Bilderberg perhaps?
http://www.bilderbergmeetings......010_2.html
June 10th, 2010 at 8:55 pm
@ ready to pop.
Yep it was in the Sun.
http://www.vancouversun.com/sp.....story.html
June 10th, 2010 at 9:03 pm
@nonymouse
Thanks, it looks like financial reform was on the table which could be relevant to this forum. His trip was paid for by the middle class though
June 10th, 2010 at 9:05 pm
MOI for surrey has just breached 11.
June 10th, 2010 at 9:37 pm
http://dealbook.blogs.nytimes......he-crisis/
George Soros’ speech on financial crisis act II. Refreshing to see a frank and clear headed commentary for a change.
June 10th, 2010 at 10:10 pm
Out of topic…
I just heard on the radio that the South African government had to give 3 million $ to FIFA for the right to print World Cup stamps!!!
Another place where the tax payers will have to pay the bills once the party is over. Meanwhile, the corporations and FIFA are making tons of money. Local food sellers are upset that they have to give way to big corporations like McDonalds.
Reminds me of the Olympics
June 10th, 2010 at 10:37 pm
How about looking at your neighbour? A bit of research in zillow.com would have revealed to you how wrong the mainstream media is when it comes to the real estate market in the US is. No one forces you at gunpoint to buy real estate at the suburbs. Check out San Fransciso Proper, Seattle city in zillow.
Here is one for those of you who are too lazy to research on zillow.
http://www.zillow.com/homedeta.....2104_zpid/
Back to 2004 level? Someone is willing to throw out 900k for this house last month.
How about San Francisco proper? How come it is still north of the 1M neighbourhood?
http://www.trulia.com/real_est.....alifornia/
This speaks the truth about real estate, which is all about location. Still waiting for your dream house on the West side at less than 1M? In your dream, I guess.
June 10th, 2010 at 10:44 pm
@Anonymous: We just found a place to rent for $1350/month.
Where is it, what part of the city? Is it a two bed/bath apt?
June 10th, 2010 at 10:47 pm
observer Says:
George Soros’ speech on financial crisis act II. Refreshing to see a frank and clear headed commentary for a change.
.
Yes. Since he is considered to be a financial terrorist, he undoubtedly knows what’s coming down the pike.
June 10th, 2010 at 10:51 pm
@paulb.: 18750! You made my day (or rather night) !
June 10th, 2010 at 10:59 pm
@Dan in Calgary: It’s a movie called Trading Places, very good movie.
June 10th, 2010 at 11:00 pm
Hey! Why don’t we get an HST rebate cheque?
http://ca.news.yahoo.com/s/cap.....te_cheques
June 10th, 2010 at 11:10 pm
@Whitebear:
You should get your act together if you want to sound smart and informed.
Are you really saying that comparing this: http://www.trulia.com/property.....o-CA-94129 to that: http://www.realtylink.org/prop.....mp;SCTP=RS would make any sense?
You should go back to Arctic and practice a bit before posting here.
June 10th, 2010 at 11:23 pm
@whitebear
“Average price per square foot for Russian Hill was $719, a decrease of 35% compared to the same period last year.”
http://www.trulia.com/real_est.....isco/1456/
June 10th, 2010 at 11:41 pm
Oh great add more fuel to the fire..
http://www.theglobeandmail.com.....cmpid=rss1
June 10th, 2010 at 11:48 pm
#114 L, don’t hesitate to stretch out here a little. The Libs are in deep crapola on the HST, don’t think they’re not past bribing the sheeple with their own money. The 600K+++ anti HST petition now far exceeds the number of votes the LIBs got in the last election. The RE CALL campaign is on, believe it. Not only will it happen but the most vulnerable ridings are those with junior MLA’s who haven’t got the pension time in. They are not going to let Campell screw them out of the lifetime trough without a fight. The army of petition workers were all NDP volunteers, still think that RE CALL isn’t the aim? 7 Libs won by a very slim margin, thats enough to bring the government down. Expect all sorts of promises from the LIBs, including a ‘signing bonus’. They’ve got until November, thats when the legislative fireworks begins, between now and then something will happen to try and pull it off…like bribes…coersion…fraud…dirty tricks…draconian manipulation of democracy…the whole Liberal bag of tricks.
June 10th, 2010 at 11:58 pm
Really?
http://www.trulia.com/real_est....._container
Here is an objective view of the Russian Hill area over the decade per sqf. Ignore the extremes in the last 3 years due to avg price being skewed by fewer transactions and you will realize that it is still around the 2007 level.
http://www.trulia.com/property.....o-CA-94129
BTW, thanks for the other contributor for showing us this very good listing in SanFran. Mind you. This is just a listing price. Well, in the same page, you will see some of the recent “Sold homes near this property”. Click on every one of them and you will realize they are all old houses on small lots selling at >1.5M. So-called real estate crash in the US!!!
June 11th, 2010 at 12:23 am
@Raguz:
That’s a great comparison. Thanks.
June 11th, 2010 at 12:36 am
quote – “Also, the immigrant investor program will be doubling the required investment effective July 1, 2010. That will reduce the number of “business investors” coming from China.”
……..
I don’t know where TonyPepe got this info. But from memory, after Liberals came to power, it was reduced to $200k investment capital to attract more business investors. It is now $400k and applicant must have a net worth of $800k.
http://www.cic.gc.ca/ENGLISH/i...../index.asp
Not a big deal, as many who come on “skilled” category – would easily have a net worth of $1M to $2M.
Just yesterday, Vancouver Sun has a story on a couple returning to China and they paid $34,000 for a bottle of cognac.
http://www.dfnionline.com/arti.....59978.html
June 11th, 2010 at 12:43 am
What’s most disgusting is the number of sponsored visitors being treated and operated on without paying at the largesse of the province. For those who insist on letting their 6-inch doing all the thinking, you obvious don’t need to know.