Whistler Hotel Condo Prices Collapse

The Pique has an article about some remarkable goings-ons just a little ways north.  Some hotel condo units in Whistler are now selling for half their peak price.

Those who own a condo unit in a Whistler hotel are sitting on great potential, but at the moment the units are not showing great value.

Real estate consultant Denise Brown with Re/Max Sea to Sky Real Estate reported that a unit originally sold in the Four Seasons Whistler for about $1.1 million was recently resold for only $520,000.

The so-called Phase 2 units in Whistler have fallen victim to the globally depressed financial situation, said Brown.

“We’ve seen the prices come down significantly,” she said.

According to Brown, this segment of the real estate business is at the bottom of the cycle so prices are good right now. She said the people who are happiest in the condo hotel market are those who are in for the long-term and have made a lifestyle choice in purchasing a condo unit in a hotel.

Lifestyle.  Got it?  Lifestyle, Lifestyle, Lifestyle.  Just repeat the mantra and you’ll be fine.

Then there’s this gem:

Kelly said this segment of the real estate industry has improved in the last six months but people aren’t willing to spend as much in Whistler as they were a decade ago.

“It’s not anything wrong with Whistler or that Whistler is worth less,” said Kelly. “It is just that people are prepared to spend less.”

It’s not that Whistler is worth less than it has ever been worth, it’s that some people paid more than it was worth.

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Anon
Guest
Anon
4 years 2 months ago

If I spend half a million on condos I better get the whole building, not just one unit!

Joe Q
Guest
Joe Q
4 years 2 months ago

Anon, give it 12 months…

Rob A.
Guest
Rob A.
4 years 2 months ago

i’ve been saying it for years, and i’ll say it again. reaestate outside downtown vancouver can cororect but downtown won’t because it’s where the action is. people want the downtown lifestyle.

hate CMHC
Guest
hate CMHC
4 years 2 months ago

Very soon Vancouver will be what people will be willing to spend less for. oh, i forgot to insert a “way” there, should read “way less”. but then there wont be any “way” outta it, so should I add a “way” there. So many ways this “way” can screw your thought process. No way!!!! LOL

Bailing in BC
Guest
Bailing in BC
4 years 2 months ago

@Rob A.:

I’m in total agreement with you. It’s about LIFESTYLE. Lifestyle, lifestyle, lifestyle. There, I got it!

Anonymous
Guest
Anonymous
4 years 2 months ago

I met a man who used to rent a 1 bedroom suite at the OV. His rent was atrocious. Then he got repeated lung problems, even ended in emergency ward with pneumonia. He then found out he had fibers in his lungs. It seems the ventilation in his suite was “shedding fibers” from the insulation.

southseacompany
Member
southseacompany
4 years 2 months ago

“Canadian home prices rise in January, Vancouver’s continue to fall” Van Sun, Mar 28/12

http://www.vancouversun.com/business/Canadian+home+prices+rise+January+Vancouver+continue+fall/6372993/story.html

“More cooling was seen in the once red-hot Vancouver market, which fell 0.3 percent to log its fourth consecutive monthly decrease.”

b5baxter
Member
4 years 2 months ago

weekly inventory graph update is available in the forum.

Over the last month the average daily increase was:
47
At this rate we will reach 17,000 in 18 days (Apr-15-12)
At this rate we will reach 20,000 in 81 days (Jun-18-12)
and 25,000 by October-02-12

space889
Member
space889
4 years 2 months ago

@Anonymous: Wasn’t in some of the OV newstory a while ago? Anyways if this is true then isn’t your buddy facing much higher risk of cancer or some serious ailments? A lot of the stuff in insulations are very toxic?

WFT?
Guest
WFT?
4 years 2 months ago

@Anonymous:
I hope he sued the landlord for personal injury as well as refund of rent for supplying an unfit dwelling.

WFT?
Guest
WFT?
4 years 2 months ago

@WFT?:

Correction: sue the landlord and the strata.

Rob A.
Guest
Rob A.
4 years 2 months ago

can you guys stop downvoting my comments? it’s very poor netiquette. you should just be downvoting spam or comments that are rude other wise the comments aren’t balanced.

Anonymous
Guest
Anonymous
4 years 2 months ago

@Rob A.: sorry, any post that contradicts bears’ believes are voted down! It’s the rule.
Posts bitching and whinning about RE are, for sure, voted up. Try it, it works.

vangrl
Member
vangrl
4 years 2 months ago
@McLovin “They don’t. Won’t even consider it. Virtually no US institution will even lend to a Canadian regardless of downpayment. They need to take a HELOC out on their property in Canada with a Canadian bank and use the money to buy the US property in cash unless they are dealing with the US arm of a Canadian bank such as BMO or RY in which case they will extend credit based on Canadian credit scores with a 25% down payment, regular rates +1.5-+2.0% and several other restrictions.” Is this true? my friend is going to Phoenix this week to… Read more »
mortageslave
Guest
mortageslave
4 years 2 months ago

Rob and the other ESL fool (believes?)
post some valid facts or stats to back your comments. People that can’t grasp english and obviously don’t understand economics get voted down, simple. Go back to school.

vangrl
Member
vangrl
4 years 2 months ago

after reading a few comments after Mclovin’s I’m seeing that Canadians can take out a U.S mortgage if they put enough down. No need to answer my question.

Many Franks
Guest
4 years 2 months ago

@southseacompany: Looking at the Teranet index (XLS link available from http://www.housepriceindex.ca) it’s actually the 5th consecutive month of reported declines. Not that it matters until we hit a 10-month stretch like we did in 2008-2009…

interesting
Guest
interesting
4 years 2 months ago

I’ve been browsing http://www.reddit.com/r/vancouver, for those of you who don’t know reddit is very popular liberal young people. The opinions I see there regarding realestate are astoundingly stupid. It just gives you an idea of what the average person is thinking.

http://www.reddit.com/r/vancouver/comments/r608m/storm_clouds_forming_over_vancouvers_realestate/c43ig5z?context=3

http://www.reddit.com/r/vancouver/comments/rfccc/vancouver_real_estate_correction_now_predicted/c45ff7v

http://www.reddit.com/r/vancouver/comments/r608m/storm_clouds_forming_over_vancouvers_realestate/c438iwt

Marinegate
Guest
Marinegate
4 years 2 months ago

@b5baxter: Thanks for the graph, here’s a direct link for people that just want to click to it:

http://vancouverpeak.com/groups/inventory-graph/forum/topic/inventory-graph/?topic_page=2&num=15#post-2339

(there’s a little # symbol by each comment there that will give you a direct link)

We’re still at the highest point of the year on that graph and the line doesn’t seem to be tapering down as much as I expected it to. The most recent update kind of looks like it could be the start of the ‘next leg up’. If it follows the same line as 2008 look out below!

McLovin
Guest
McLovin
4 years 2 months ago
Is this true? my friend is going to Phoenix this week to look at properties, she told me that she is taking a mortgage out in the states, that as long as she comes up with 40% down that they will lend her money at 3.8% for a 15 year amm (15 years is max for non U.S citizens). Is she wrong? has she been mislead by the U.S realtor that she’s using? I said “virtually”. Your friend obviously found a US bank to play ball. (I would certainly verify with the bank in writing before removng subjects) One off… Read more »
Yak
Guest
Yak
4 years 2 months ago

@mortageslave:

What about Grammar? Capitalize the first letter of the sentence. You should go to school.

Makaya
Member
Makaya
4 years 2 months ago
A good piece to read from the Whisperer today… (…) Such is the case with this property at 6231 Gibbons Drive in Richmond. This 3,500 square foot house sits on a huge 21,857 foot lot in the prestigious Terra Nova neighbourhood. It’s been on the market for a long time, originally listed on February 28th, 2008 for $2,388,000, the home competes for buyers with it’s neighbour at 6251 Gibbons Drive (listed for $2,480,000). (…) I am told 6231 Gibbons Drive sold this week. After lowering the asking price to $1,888,000, the property sold for $1,428,000. That’s $960,000 off the original… Read more »
vangrl
Member
vangrl
4 years 2 months ago

the line on that graph for 2011 is cut. Do you know what we peaked at that year?

Anonymouse
Guest
Anonymouse
4 years 2 months ago

@Makaya: “-40% in HAMland… ouch!”

Is it possible that that and the neighbouring property were owned by the same person, and their asking prices were ridiculous?

Anonymous
Guest
Anonymous
4 years 2 months ago

‘i’ve been saying it for years, and i’ll say it again. reaestate outside downtown vancouver can cororect but downtown won’t because it’s where the action is. people want the downtown lifestyle. ‘

And of course, it’s impossible to rent downtown, especially since everyone who buys a condo actually lives in it. Good grief! I never realized there were IQ’s less than zero until I read some of the postings on this blog.

Clockbike
Member
Clockbike
4 years 2 months ago

Please note everyone, that CBC radio 1 will be broadcasting the 2012 Federal Budget Special at 1:00pm Local time, (one hour from now).

You can also stream it, here:

http://www.cbc.ca/liveradio/popup/index.html?networkKey=cbc_radio_one&programKey=kelowna

Anonymous
Guest
Anonymous
4 years 2 months ago

@mortageslave: what is the point having good english, understand economics, know how to read coloful charts and …housepoor?

Scott
Guest
Scott
4 years 2 months ago

@Anonymous: House-poor, I don’t think that word means what you think it means.

what does house poor mean?

A situation that describes a person who spends a large proportion of his or her total income on home ownership, including mortgage payments, property taxes, maintenance and utilities. House poor individuals are short of cash for discretionary items and tend to have trouble meeting other financial obligations like vehicle payments.

mortageslave
Guest
mortageslave
4 years 2 months ago

@YAK

WTF does capitalization have to do with Grammer you ####ing moron!

Back on to topic, 2 cent levy on GAS coming on Sunday. Price of everything is rising, of course we can afford to pay more for houses. Are we expecting anything interesting from Flaherty’s budget speach at 1pm today? I see he’s raising the retirement age to 67. I’m not counting on seeing any of this 35 years from now anyways…

Jason
Guest
4 years 2 months ago

@Anonymous:
If the OV is supposed to be LEED compliant, there should have been a plan for Indoor Air Quality in place. It just shows how useless LEED can be if it isn’t enforced and followed through.

WFT?
Guest
WFT?
4 years 2 months ago

@mortageslave:

Why did you capitalize the word “grammar”?

Anonymous
Guest
Anonymous
4 years 2 months ago

@vangrl: “…as long as she comes up with 40% down that they will lend her money at 3.8% for a 15 year amm (15 years is max for non U.S citizens).”

It certainly seems reasonable that a US bank would lend under these terms. If you find out the name of the bank, please post as I’m interested in buying an investment property down South also.

UnagiDon
Guest
UnagiDon
4 years 2 months ago

More US taxpayer bailouts of those in negative equity via “incentivized principal reduction”:
http://globaleconomicanalysis.blogspot.ca/2012/03/geithner-wants-to-throw-still-more.html

Canada’s financial system is the envy of the world because we don’t need to bother with such pussyfooting: CMHC is unequivocally backed by the taxpayers.

Anonymous
Guest
Anonymous
4 years 2 months ago

@Anonymouse: “Is it possible that that and the neighbouring property were owned by the same person, and their asking prices were ridiculous?”

I’d say it’s more than possible that you’re up to your useless nitpicking again. You claim to not be a bull, but I say: If it walks like a bull and talks like a bull…

jumpin in
Guest
jumpin in
4 years 2 months ago

MLS showing only 60 properties in Richmond instead of 1036… I triple checked all my clickable options… Strange.

M-
Member
4 years 2 months ago

@jumpin in: It looks like listings from REBGV aren’t coming through properly– it’s the same story on Realtor.ca… But in Surrey and FV areas, as well as on Vancouver Island, it looks like listings are showing up as they should.

Meh
Guest
Meh
4 years 2 months ago

Disappointing.

“The budget did not include any immediate measures to deal with a housing market that Mr. Flaherty and Bank of Canada Governor Mark Carney have repeatedly expressed concern about in recent months, as borrowers take advantage of low interest rates to pile up debt. Nonetheless, the budget says Ottawa will introduce “enhancements to the governance and oversight framework” for Canada Mortgage and Housing Corp. CMHC is the Crown corporation that backstops risk in the housing sector by providing insurance on mortgages.”

http://www.theglobeandmail.com/news/politics/tory-budget-slashes-52-billion-in-spending-gives-boomers-a-pass-on-oas-reform/article2386044/page2/

Makaya
Member
Makaya
4 years 2 months ago

@Meh: “The government says the changes are needed so the program – and Ottawa’s bottom line – are not overwhelmed by the large baby-boom generation of Canadians born between 1946 and 1964. Yet all but the tail end of this cohort will be protected from the higher eligibility age, which will be phased in between 2023 and 2029.”

A government run by the boomers for the boomers… at the expense of their children and grandchildren. Shameful and disgusting!

Anonymouse
Guest
Anonymouse
4 years 2 months ago

@Anonymous:

“I’d say it’s more than possible that you’re up to your useless nitpicking again. ”

So it’s nit-picking to point out that using a single property to declare Richmond 40% off is nonsense? Riiight.

cmhc Hater
Guest
cmhc Hater
4 years 2 months ago

CMHC on run

http://business.financialpost.com/2012/03/29/ottawa-to-toughen-cmhc-oversight/

“The government will introduce enhancements to the governance and oversight framework of Canada Mortgage and Housing Corp.,” according to the budget, which provided few details about what that will mean. “The government will propose legislative amendments to strengthen oversight of CMHC and to ensure its commercial activities are managed in a manner that promotes the stability of the financial system.

patriotz
Member
4 years 2 months ago

@WFT?:
“Why did you capitalize the word “grammar”?”

He didn’t. Obviously he was talking about Kelsey Grammer.

:-;

Anonymous
Guest
Anonymous
4 years 2 months ago
@cmhc Hater: “The government will propose legislative amendments to strengthen oversight of CMHC and to ensure its commercial activities are managed in a manner that promotes the stability of the financial system. There you have it; we’ve reached a point in our economy where housing is the financial system. This has been achieved by short-sighted governments conspiring with greedy bankers to play crack dealer to a nation of addicts. Wait until the dealer can’t get any more stuff; the withdrawal symptoms are going to be a doozy. Unfortunately, those of us who didn’t take part will still feel the effects,… Read more »
Meh
Guest
Meh
4 years 2 months ago

@cmhc Hater: Any mention of an increase to the CMHC cap? Or could that happen outside of the budget?

cmhc Hater
Guest
cmhc Hater
4 years 2 months ago

Thanks goodness they did not change the amortization, dp rules. The fools would have rushed in to capitalize on pre-approveds and this sucker would have lived through another peak buying season. Maybe “F@^t”-y had that in his mind. Maybe instead of making it public, he is going to tell CMHC bosses to follow the unwritten rule of 10% DP and 25 year amorts. That is a much better choice IMHO.

cmhc Hater
Guest
cmhc Hater
4 years 2 months ago

@Meh: No increase in cap is a given as otherwise CMHC would not have come up the “conservative” insurance plan they did a few days ago. So, yeah, no increase in budget.

patriotz
Member
4 years 2 months ago

I think that Garth (who was once Minister of Revenue) got it about right:

http://www.greaterfool.ca/2012/03/29/f-factor/

It’s still pedal to the metal.

Anonymous
Guest
Anonymous
4 years 2 months ago

@vangrl:

I don’t think any of the missing data is higher than the peak shown.

Next week’s graph will include some of the missing data.

jesse
Member
4 years 2 months ago

Federal budget: http://www.budget.gc.ca/2012/plan/pdf/Plan2012-eng.pdf

Some items of note
– Infrastructure spending decreases substantially
– Elimination of OETC
– Elimination of several partnership tax avoidance loopholes
– Curtailing of thin capitalization rules for non-residents

patriotz will like this: most of the public sector cuts will be in the Ottawa region. Most of the impact will take place in 2013 as departments try to figure out who/what to cut.

Then there’s the off-balance-sheet stuff, notably CMHC insurance in force limitations.

Anonymous
Guest
Anonymous
4 years 2 months ago

“Doug Porter, deputy chief economist with the Bank of Montreal, said it sounds like Ottawa wants to clear up who CMHC reports to ultimately. “It sounds like they want the finance minister to have the ultimate say when they believe it is necessary to make changes in policy,” he said.”

holy crap. it covers mortgages the same size as the national debt and you mean they don’t know who it reports to??? are you kidding me? yes, i know the correct answer is the RE industry, but still, you have to be kidding me.

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