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Vancouver RE Price Reductions

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Yesterday we posted a link to an article about the high number of properties for sale in Vancouver. What’s possibly more interesting than the sheer number of listings in the very high number of price reductions we’re currently seeing. Yesterday Paulb shared numbers that showed 232 new listings and 56 sales, but nearly 3 times that number of price changes at 162.

We’ve seen many days where price changes have exceeded 200. Even with listings for the REBGV area nearing 19,000 Mclovin points out that we’re consistently seeing about 1% of total inventory drop their price every single day. That means about 5% of all listings in Vancouver are reducing their asking price each week.

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Leading Story?!?

In fact, large parts of the Netherlands and New Orleans are built on land that was simply “made”

There's this city in Italy called Venice … it was built on a marsh!

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Anonymous

I hope this blog is archived for posterity. Someone should write a script and scrape it for:

– patriotzed (insight)

– paulb (stats)

– supraboy aka browntown aka kitetowardsmoon aka vancouverboom2 aka supersmartbull (hilarity). That guy's shit is brilliant, somebody get him a lifetime achievement award for trolling so consistently for so many years.

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rp1

#152 @chopper: Last I checked the CMHC was leveraged 70:1, same as Lehman Brothers. I actually think the government's policy of bouncing the housing market might reduce their total losses. Any speculator with half a brain got out in 2009, and ordinary people (i.e. rubes) will take the hit.

Ask yourself this: which set of loans will have a higher recovery value for the CMHC? A bankrupt speculator with 3-5 properties, or 3-5 first time buyers? If speculators go bust there is a massive housing market crash and the rubes get cheap houses. If the rubes go bust we're simply pulling forward wealth extraction on the middle class, but hey, that would have happened anyway. So maybe the economy goes into the ditch, but the people who matter got their money out and can start a new bubble.

Too cynical?

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realpaul

Rennie and the COV should be in touch with SoupNutz about the OV. Apparently the DimSum crowd hasn't heard about the view and amenities that are there for the taking, Soup Dribble could maybe get the word out. Where are all the billionaire Chinese buyers that Soupface has assured us about? Why aren't they flooding in? And where is that guy with the sandwich board who was haunting the site? Doesn't he want his money back too? Hey I just got a great idea….. Little Pansy Robertson the Idiot Mayor and Shit Vision Vancouver could hire a camera crew that can't focus a lens properly to follow hi around and pimp the OV. BTW, another hilarious annoncement from Shitty Vison today..they are going to pay $350,00 grand to a few Shitty Hall insiders to study the destruction of the Viaducts… Read more »

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Newcomer

@Joshua:

I second the call for a return to a Paul B blog. It's not that I don't appreciate this blog, but there are a lot of silly comments.

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900kCrackHouse

I know people that worked on the designs / engineering work for the OV buildings. Apparently it was quite the rush job, and quality was definately sacrificed to get these buildings completed on time.

If the people involved behind the scenes are worried about the quality, then I wouldn't touch these buildings with a 10 foot pole. Would't be surprised if these building start leaking in a few years.

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Kim Jong-il buy 3

Tony Danza Says:

June 24th, 2010 at 10:25 pm

@anonymous: Where the hell is the “heart” of downtown Richmond? Where the hell is downtown Richmond?

I don't think there is a Heart; it’s more like a Bowel or perhaps Small Intestine.

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Tony Danza

@VHB: Drop those prices down to around 250k for a 1 bed with view and I'd consider purchasing if the seller was willing to drop their price to 220k.

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doubladay

"effluent"

Hilarious!

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Anonymous

@VHB: if the city is losing money on the OV, maybe they should raise residential property taxes!

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VHB

I looked up what was on the public MLS for the oly village. Results here.

1 BR range from just over 500K to just under 700K.

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Tony Danza

@anonymous: Where the hell is the "heart" of downtown Richmond? Where the hell is downtown Richmond?

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G

From Wikipedia:

Effluent is defined by the United States Environmental Protection Agency as “wastewater – treated or untreated – that flows out of a treatment plant, sewer, or industrial outfall. Generally refers to wastes discharged into surface waters”.[1] The Compact Oxford English Dictionary defines effluent as “liquid waste or sewage discharged into a river or the sea”.[2]

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acefupn

I really like the OV – I would be willing to buy there once the prices drop 50%.

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anonymous

I've heard Richmond called a lot of things, but never effluent:

V826361

"Investors should take note!! A fully furnished hotel suite in the Hilton Vancouver Airport Hotel at the heart of DT Richmond!! Effluent Richmond is the Pacific Gateway to Canada…"

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junius

I divorced my wife over nothing!

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jesse

On the Olympic Village presale front, there is a very good chance the places Rennie will be marketing will soon be below what the presale buyers paid. News story with angry presale suckers buyers claiming unfair treatment coming soon!

The whole concept the OV is going to recoup the City's money is starting to look a bit shaky.

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chopper

@VHB: The city is going to lose 100’s of millions on this deal. Exactly! The million dollar question is – who's going to bail the city out? Looking at the bigger picture, who's going to bail the CMHC out when it all goes belly up? I know it's been discussed on this blog before, their retained earnings, etc. but how big are their cash reserves, does this money get grabbed by the Feds? Have they put some away for a rainy day? I honestly think the upcoming crash may crush our economy. I think the average condo in Van will lose about $150k over the next couple of years, and a large percentage of flippers are going to walk away leaving the CMHC holding the bag. I think the impending crash in Vancouver and Toronto alone will be in the… Read more »

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Kim Jong-il buy 3

That CBC radio interview is pure Gold!!! I'll bet my left nut the same thing is going to happen with that new building in Richmomd.

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jesse

@G: Thanks for the link.

A few cosmetic fixups by the developer and their claims won't have a leg to stand on.

Sorry about your luck, presale buyers. But pardon us in advance if we don't sympathize.

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Vanrod

Sorry thats for McLovin…he was posting the bogus predictions

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Vanrod

@The Source: Friday is tomorrow you know? 19K by tomorrow is basically impossible. Why bother posting stuff that you know is wrong

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G

From article: "We have buyers going, 'Wow, I love the hardwood floors and the view and the sub-zero [freezer],'" said Rennie. The 473 remaining units went on the market in May and 36 have been sold so far, according to Bob Rennie, a Vancouver condominium marketer who the city has hired on a contract for two years to sell the project. The buyers are unhappy that there's a parking lot where there was supposed to be a park, that washers and dryers have not been installed in their units and that their $5,000 fireplaces are defective, said Baynham. ——- What sad excuses to try to get out of the agreement. Im sure the washer/dryer issue will be dealt with and they probably don't even know how to run their fireplaces properly. If they are defective they will be replaced. And… Read more »

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G

From cbc website:

http://www.cbc.ca/canada/british-columbia/story/2…

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Dave

@VHB:

The problem with OV, in my opinion, is that it has too many high end units in a yet to be high end area. Once everything else gets built up in the southeast False Creek area, it will be a prime location. But it isn't yet and so it will sell slowly. Let's remember that this was the highest priced piece of land to sell in Canada per ft2 of developable area (I believe it still is). But, it definitely isn't the most prime spot in the country. So, Millennium was swimming upstream on Day 1 IMO. The premium they paid was simply for the future marketing benefit of having done an Olympic Village.

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