Friday free-for-all!

Are you ready for a long weekend?

It’s time for our regular end of the week news round up and open topic discussion thread!

BCREA: Average home price to dip 7.8%
MOI: This one goes past eleven?
The top ten weakest markets
Cheatsheet: What percentage drop equals rise?
Genworth: Condos demand will continue
Jump in claims pinch CMHC
Falcon flies away from cabinet
Interrupted by dancing butterflies
Phoenix realtor on bubble bloggers 2006
What that market did after

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

Sort by:   newest | oldest | most voted
Anonymous
Guest
Anonymous

@jesse: that is great presentation. question: why dint you use your interlectual asset to make you a richie?

Anonymous
Guest
Anonymous

@ScubaSteve: “Our dog buy three too.”
if your dog buy three too, what would that make you? less intelligent than your own dog? just saying…

jesse
Member

I threw together some recent coagulated thoughts on the housing market in Vancouver.
Presentation

Please let me know what you think.

ReadyToPop
Guest
ReadyToPop

As China’s economic growth cooled to a three-year low in the three months that ended in June, inventories have swelled at consumer businesses like car dealers, food makers, liquor companies and department stores, according to a Reuters analysis of balance sheets from 350 Chinese companies.

The bloated inventories complicate Beijing’s efforts to shore up growth as it prepares for a once-a-decade leadership change this year. If China pours in more stimulus money when demand is weak, it could just make the surplus worse by encouraging companies to produce more goods than the market can digest.

No Quick Fix for Chinese Inventory Stockpiles

Vote Down The Facts
Guest
Vote Down The Facts

@Crikey:

Maybe they just crossed out the clause from a standard contract?

Crikey
Guest
Crikey

@JD:
“We did not have that clause because the plan was to price below what we wanted to get the bidding war.”

Lucky you, for not having to sign a contract that is standard issue from the Real Estate Board of Greater Vancouver. So the contract was one made up by the Used House Salesperson or the company he/she worked for?

Personally, I would rather be signing something that is standard issue across the city than a contract made in-house that has been seen/used much less. I would feel safer that way.

JD
Member
JD

@JD: The plan was our agent’s, and this is why we didn’t have the clause.

Crikey
Guest
Crikey

I should add… of course the conversation below can happen with the existing typical MLS contract, but under the existing clauses, such a contract should rightfully end with:

Used House Salesperson:”Okay, buddy. I have a buyer for you at the price you agreed to. You have every right not to sell if you don’t want to. But you owe me my commission. That’ll be $XX,XXX dollars, please…”

JD
Member
JD

@Crikey:
We did not have that clause because the plan was to price below what we wanted to get the bidding war. We were not obligated to take any price, and only to pay commission on completion. It worked great for us. Now we are happily renting.

Crikey
Guest
Crikey
@An Observer: “So it does happen but I’m sure that realtor lost a lot of potential business.” You mean the guy actually expected a client to live up to what he signed up for? The nerve!!! No. I don’t buy that he lost any business because of that. The majority of sellers hardly know anything substantial about the housing market, much less about what a Used House Salesman went and did to make sure a client (gasp!) bided by the terms of a *signed contract*. The clause is there, and it actually makes sense. Otherwise, there would potentially be no end of conversations like this one: Seller: “Okay, I’d like to list my house for sale at $X, please. Here is my signature on the listing contract” ==================== ===2 months later=== ==================== Used House Salesperson: “I have a legitimate offer… Read more »
Watcher
Guest
Watcher

Reality- what is the business case for zillow to do that? Advertising? Creating an alternative listing Site? Canada has 30 million people, vancouver has about 2.5, Toronto has 8. There wouldn’t be enough volume to justify it.

An Observer
Guest

@Crikey:

There was a case earlier this year (I believe it was headlined at greaterfool.ca or possibly one of the local blogs) where the realtor sued the seller for commission and won because they turned down an asking price sale. So it does happen but I’m sure that realtor lost a lot of potential business.

Romeo Jordan
Guest
Romeo Jordan

Ho hum, but gum up your bum….

Listings will surge, prices ARE DROPPING, the uptick is statistical noise, everyone is talking about a 30% drop, which will just be a stopping point on the way down.

Rates will rise..eventually…that will add more fuel to the fire….we’re going down for YEARS.

Suck on that McLovin.

Crikey
Guest
Crikey
@JD: “who would sign a contract with a realtor/”used house salesperson” that paid them when no sale was made. I have sold my house before in such a manor as this, and would have owed nothing if it didn’t work.” The typical multiple listing contract that a seller signs is not just about if the sale goes through. It is about whether or not the Used House Salesperson found a bonafide buyer at the minimum price you agreed to sell for. This makes sense, to avoid shenanigans. Do you still have your multiple listing contract? Assuming it is a standard multiple listing contract from Real Estate Board of Greater Vancouver, look under section 5, “LISTING BROKERAGE’S RENUMERATION”. Under item 5, : “The Seller agrees: A. To pay to the Listing Agent a gross commission of of the sale price of… Read more »
HipsterBear
Guest
HipsterBear

@JD: An easy task is for Zillow to offer to pay $300k per year or whatev for the data and have the owners of MLS decide if they want to turn down the money.

JD
Member
JD

@Crikey:
We don’t know what the contract the seller signed, but who would sign a contract with a realtor/”used house salesperson” that paid them when no sale was made. I have sold my house before in such a manor as this, and would have owed nothing if it didn’t work.
What is your experience or example of a contract where money would be owed if only offers were not satisfactory for seller?

Anonymous
Guest
Anonymous

@patriotz:

Quite obviously it was the realtor herself who contacted the media, given the photo of her smiling in front of the house.

I don’t think so. The realtor wasn’t bragging in the article how she got $1 million over asking. She was defending her decision to list it as $1.88 million. In the article she explained that is what she thought the property was worth based on other sales. If her intention was to make her self look good it failed miserably.

Her website identifies the property as 625 Southborough Drive. It is assessed for $2,372,300.

So again no excuse to list at $1.88 million unless her intention was for a bidding war. If that was the case she didn’t mention that to her clients nor in the article.

ScubaSteve
Member
ScubaSteve

this was on the Vancouver Bubble thread: http://forums.redflagdeals.com/vancouver-bubble-road-50-housing-crash-w-monthly-stats-1194032/113/

DETACHED:
Aug/12 = 624 sales @ $1,142,237
Aug/11 = 1029 sales @ $1,162,242

ATTACHED:
Aug/12 = 300 sales @ $547,588
Aug/11 = 403 sales @ $562,145

APARTMENT:
Aug/12 = 725 sales @ $444,218
Aug/11 = 955 sales @ $463,204

TOTAL:
Aug/12 = 1649 sales @ $735,244 = $1.212 billion dollars
Aug/11 = 2387 sales @ $781,253 = $1.865 billion dollars

$1.865 billion last year and $1.212 billion this year!!! That’s 35% lower. LOTTA HUNGARY realtors out there I think… LOL.

ScubaSteve
Member
ScubaSteve

@RichmanAnon:
“I buy three, my husband buy three.”

Our dog buy three too.

Pass the ramen noodles.

RichmanAnon
Guest
RichmanAnon

(in Pheonix)

RichmanAnon
Guest
RichmanAnon

I buy three, my husband buy three.

Van
Guest
Van

Has anyone taken advantage of the correction?

Van
Guest
Van

According to Ian Watt that’s it. 5% down. Correction is over.

I see prices up 10% plus by end of year. This year!!!

Crikey
Guest
Crikey
@JD: “I would have to say the realtor in this case did the right thing for the seller. She priced the house below a falling market, and attracted enough attention of interested buyers to create a bidding war” No, the Used House Salesperson did not do a good thing. Assuming that the old lady owner signed a typical sales agreeement with the salesperson, if the only offers that had come through had been at the much-lower-than-market list price, the owner would have been forced to pay the saleperson a commission. That is, whether or not the owner accepted any offer, as long as the offer came in at least at the list price, the salesperson commission is owed. Even if you assume that the owner was in the know and just wanted to attract attention, by listing so very low… Read more »
JD
Member
JD

@Anonymous:
Realtors pay lots of money for the right to call themselves realtors, for licensing and membership fees and the such. If you want the data they collect to be available, someone will be paying for it.
As far as the data the government collects, then a freedom of information request should be sufficient to get that, however it still would not be free.
In our society, what do you really expect to be free?
Someone always pays, and if it isn’t the user, it is the taxpayer. Which is better?

As for Zillow, they pay for their data, and in return make money from advertising. If you think their model will work here, great, why not do the same here?