No sale on overpriced condo

Local rockstar realtor Ian Watt speaks truth to power in his most recent youtube episode.

Sounds like he’s getting a little frustrated with sellers who think their condo is special.

Pink carpet in the bathroom adds an easy $20k right?

Nope.  As Mr. Watt says, there may be all sorts of reasons nobody is interested in your Vancouver Condo, but the number one reason is that it’s overpriced:

Meanwhile his evil twin Ten Volt still claims to be the worlds busiest real estate agent in the world:

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Bo Xilai
Guest
Bo Xilai

Very good parody…

But Ten Volt should wear the same D-Bag t-shirts as Ian Watt… Maybe an Ed Hardy t-shirt would be appropriate?

VHB
Member
VHB

Here are the month end projections.

Total days	22
Days elapsed so far	8
Weekends / holidays	5
Days missing	0
Days remaining	14
7 Calendar Day Moving Average: Sales	96
7 Calendar Day Moving Average: Listings	202
SALES	
Sales so far	684
Projection for rest of month (using 7day MA)	1347
Projected month end total	2031
NEW LISTINGS	
Listings so far	1654
Projection for rest of month (using 7day MA)	2834
Projected month end total	4488
Sell-list so far	41.4%
Projected month-end sell-list	45.3%
MONTHS OF INVENTORY	
Inventory as of August 13, 2012	18788
Current MoI at this sales pace	9.25

My projections are a bit different than those posted by ‘good format’ because I think goodformat included BC Day’s ‘zero’ in the 7-day average while I didn’t. Doesn’t matter much–sales are still low, but not lower than 2008.

HipsterBear
Guest
HipsterBear

Watt put out a vid in ’08 I think berating renters for not buying. Remember Realtors need both a buyer and a seller to make their money. It’s only a matter of time before potential buyers start getting the emotional manipulation card.

That said, Watt is right. Lowering the price will work, but I think most underestimate how low prices must go to reinvigorate sales.

Anonymous
Guest
Anonymous

From YatterMatters,

New stats from BCREA:
http://www.bcrea.bc.ca/docs/news-2012/2012-07.pdf

The British Columbia Real Estate Association (BCREA) reports that the dollar volume of homes sold through the Multiple Listing Service® (MLS®) in BC declined 12.9 per cent to $3.1 billion in July compared to the same month last year.

The average MLS® residential price was $474,954, 12.2 per cent lower than a year ago.

…home sales through the Real Estate Board of Greater Vancouver were down 18 per cent over the same period.

Year-to-date, BC residential sales dollar volume declined 16.5 per cent to $23.5 billion,
compared to the same period last year. Residential unit sales dipped 7.9 per cent to 44,794
units, while the average MLS® residential price was 9.4 per cent lower at $525,183.

I didn’t know they were allowed to use the words declined, dipped and lower.

crabman
Guest

That parody was hilarious! Especially the part where he said prices will plateau at a 5% drop!

Anonymous
Guest
Anonymous

@crabman: I see what you did there.

Manna from heaven
Guest
Manna from heaven

China’s Gao Shan heads home to face charges on $130M fraud ring after eight years hiding in Vancouver.

http://news.nationalpost.com/2012/08/13/chinas-gao-shan-heads-home-to-face-charges-on-130m-fraud-ring-after-eight-years-hiding-in-vancouver/

Just how many of these dirt bags have taken up residence in Canada? Round them up and send them back!

YLTNboomerang
Member

CMHC Capitulation has started:

http://business.financialpost.com/2012/08/14/housing-market-crash-not-in-cards-for-canada-cmhc/

“Canada Mortgage and Housing Corp. is forecasting a moderate slowdown in new-home construction starts as well as sales of existing housing.”

They are still out to lunch in their forecast but the fact that they are starting to temper their outlook tells me they are starting to get nervous and can’t be all roses while everyone else is starting to predict doom. Of course though “no crash in the cards” from CMHC is like the CEO after a horrible Q2 stating “our order book looks good for a strong 2H”.

patriotz
Member

@HipsterBear:
“I think most underestimate how low prices must go to reinvigorate sales.”

Indeed. Sales won’t pick up until prices hit bottom, as we’ve seen in the US and in other busts.

So even for RE agents, a fast bust is the best bust.

patriotz
Member

You’ve seen most of this already, but I really liked this one:

Photographers who visit this imitation English town generally come not to capture decay but newlyweds, posing in front of mock-Tudor buildings and red phone boxes.

The Shanghai suburb boasts a market square, a castle, a neo-gothic church, cobbled streets, a pub, a chip shop, Georgian-style houses and statues of well-known English figures, such as Winston Churchill, James Bond and Harry Potter.

As a backdrop, Thames Town is a hit with the wedding industry, but that is about it.

“The city is a virtual ghost town, with empty shops and unused roads,” according to an article in Business Insider.

http://www.bbc.co.uk/news/magazine-19049254

UnagiDon
Guest
UnagiDon

@Manna from heaven: WTF? Even The Onion could not write comedy as good as this:

“Canadians should take it as a “compliment” that they are favoured by economic criminals, noting that fraudsters are attracted for the same reasons as legitimate Chinese millionaires. “For criminal suspects, it’s not easy to find a place as friendly and multicultural … in which they can live on the money they embezzled or stole,” said Ms. Wang.”

Anomynous
Guest
Anomynous

I’m shocked! The main, numero uno, reason for condo selling in Vancouver as anywhere in the world is because it is overpriced! What happened with “this place is different”? BPOE?

I thought it was because the price is too low, so it doesn’t interest buyers that are looking only for >1mil properties 😉
No showings? Raise the price to get showings, yeah!

I guess we’re going to see more of this “as any other bubble in the world” in the coming months/years.

registered
Member
registered

@7 Manna from heaven: The most stunning aspect of that article:

“…Jia Wang, assistant director of the University of Alberta’s China Institute…..
Canadians should take it as a “compliment” that they are favoured by economic criminals, noting that fraudsters are attracted for the same reasons as legitimate Chinese millionaires. “For criminal suspects, it’s not easy to find a place as friendly and multicultural … in which they can live on the money they embezzled or stole,” said Ms. Wang.”

Sorry, that’s a cultural gap I can’t embrace.

yvr2zrh
Member

Failed Flip
3129 E. 6th Ave, Vancouver
Sold – August 5, 2011 $715,000
Attempted sell as a pre-sale new-build house??? $1,068,000
Listed and cancelled multiple times
Finally listed the original tear-down – Abandoned the build – June 20, 2012 at $759,800
Sold for $700,000

With all those transaction and holding costs – this has to be a $50,000 loss and no success on the build.

Given the builder that owned it – it is probably a good thing that it never got built because it would have probably been a P.O.S.

This is getting boring – I could post stories like this all day. Richmond is going down!!!!!

Also – Most of the West Side sales (other than new) are going for 10% below assessed.

Realtor says
Guest
Realtor says

See folks, the problem is that people have priced 5-10% over market in anticipation for turn around later in the year. If they want to sell now they need to come down to market. Market price right now, as proven in the benchmark prices remain at all time highs. It will be difficult for a broad sell off, especially with these exceptionally low rates and steady demand. 2,000+ sales in August is hugely robust.

gokou3
Guest
gokou3

@Realtor says: Seems like you can use the “low interest” argument to support ANY prices, not just the current prices.

asalvari1
Guest
asalvari1

@patriotz:

What really caught my attention was the last section:

Meanwhile, the city looks set for a glut of prime office space.

“Tianjin… will soon have more prime office space than will be filled in a quarter-century at the current absorption rate,” says business magazine Forbes.

WOW.

Realtor says
Guest
Realtor says

gokou3 – true. I would not be surprised to see priced as much as double in next 5 years if rates stay this low. If we see low rates like this for next 20 years+ then real estate owners will do very well.

Trader Joe
Guest
Trader Joe

@Realtor says:

“as proven in the benchmark”

Ha ha ha ha! I see you have read the memo sent to members by the RE board that you should always refer to the realtor created so-called “benchmark” price. That statistical creation does not “prove” anything.

logic
Guest
logic

“priced as much as double”?

– back to ESL school with you, sir!

Realtor says
Guest
Realtor says

ZRH2YVR – Good find. Cheap building lots like that one are still selling above assessed. But good find, I didn’t realize stuff was selling at this type of bargain.

Realtor says
Guest
Realtor says

logic – *prices.. oops the d is beside the s. Good catch, thanks 🙂

Realtor says
Guest
Realtor says

Trader Joe – benchmark is a lie? Would that be legal?

Anonymous
Guest
Anonymous

@Manna from heaven: “China’s Gao Shan heads home to face charges on $130M fraud ring after eight years hiding in Vancouver.”

Article about a $130M fraudster and no mug shot? What’s that all about?

stupid logic
Guest
stupid logic

@logic: who the f$$$k cares about spelling and grammar. if you are so smart, why arent you collecting rents instead of paying rents?

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