Most expensive listing sees biggest price drop

Anyone remember a story about the most expensive real estate listing in all of Canada?
It made news first for the obvious reason: most expensive property in the country!

Then it made some blogging news because the pictures of the really weird house turned out to be imaginary.

But you got to figure with all that nation wide exposure it must have sold for a pretty sum right?

Well not exactly.

As observer points out that’s a $25 million (or 66 percent!) price drop in less than a year!

Surely at that rate we must have the biggest asking price collapse in all of Canada here.

If you’re into extrapolation this means that in one year they’ll pay you six figures to take it off their hands.

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Xhdh
Guest
Xhdh
2 years 7 months ago

Fucking this site and all the lying Fuckers on it!

Move out of your mommas home!

patriotz
Member
2 years 7 months ago

Canada’s housing market among most ‘bubbly’ in world, Economist finds

It was the Economist, of course, that produced the classic report in 2005 that identified the global housing bubble and predicted severe consequences.

Canada’s housing market is still among the frothiest in the world, more than a year after the federal government moved to head off a bursting bubble, findings by The Economist suggest.

Of course the findings by the Economist show that the federal government never intended to “head off” a bubble in the first place.

VMD
Member
2 years 7 months ago

Regulator eyes tighter mortgage rules
Sep. 03 2013
Canada’s banking regulator has been gathering detailed mortgage information from financial institutions, in what could be a precursor to changes in the rules for home loans.

The Office of the Superintendent of Financial Institutions (OSFI) has spent months considering a tightening of mortgage rules for lenders, a decision that’s being weighed as the housing market begins to pick up after a year-long slump. That slide began when Finance Minister Jim Flaherty tightened the rules for mortgage insurance in July, 2012.

KopyrightKlepto
Member
KopyrightKlepto
2 years 7 months ago

This property appears to have been subdivided. The original listing was 34k sqft, and the current listing is 26k.

RealityCheck
Guest
RealityCheck
2 years 7 months ago
Can’t believe that this post below got downvoted yesterday. Wow, some people really detached from reality and borderline delusional. One commenter even suggested that a lot could go down to ZERO value. DELUSIONAL. Give me these $380K lots for $280k and I’ll buy them all! “2013 Central Surrey: New house costs $680K –> Lot 380K, Building $300K 2002 Central Surrey: New house costs $320K —> Lot 170K, Building 150K Therefore, Lot price increased by 210K and Building costs by $150K. Now, where can these values possibly crash to? If land values fall by a catastrophic 33%, then new builds like… Read more »
RealityCheck
Guest
RealityCheck
2 years 7 months ago

XhDh:

Leave out the foul language.

However, I do agree that most visitors to this site are indeed delusional with respect to the 50%+ correction they think will happen. See above post.

Softy
Guest
Softy
2 years 7 months ago

“This property appears to have been subdivided. The original listing was 34k sqft, and the current listing is 26k.”

It is more likely that the listing agent got the information wrong intitially.

Devore
Member
Devore
2 years 7 months ago

@RealityCheck: why are you comparing against 2002? Who cares about 2002? 2002 was just the very beginning of the real estate bull market where buying made perfect sense vs renting, which around 2006 turned into a flat out bubble.

jesse
Member
2 years 7 months ago

“Lot 380K, Building $300K”

If the rent on the existing structure is high enough compared to the rent received after redevelopment costs, perhaps it’s not quite ready for said redevelopment. I might suggest your comparison needs some time discounting.

What was Buffett’s line again?

RealityCheck
Guest
RealityCheck
2 years 7 months ago
Devore: Why not? You guys do it all the time when you say that prices have gone up by X amount over 10 years. Who cares about rent ratios?? IT IS NOT ABOUT YOU ANYMORE! Rent ratios don’t matter in a globalized world. Once you own a plot of land after 25 years, it is yours, your kids, your grand kids, etc., In your view, San Diego is a huge bubble …rents way out of whack with prices. Laughable really. Jesse, Jesse, Jesse: I think you will always be a renter. You see the glass as half empty always. My… Read more »
BWilson
Guest
BWilson
2 years 7 months ago

“Rent ratios don’t matter in a globalized world”

Good one.. why would anyone look at the cost of a substitute when looking to purchase a product?

Classic bubblespeak.

UBC in crisis mode
Guest
UBC in crisis mode
2 years 7 months ago

Who has Van West sales data for July and August?

From one web site, Van West:

Month / New listing /Sale

July / 292 / 120
Aug / 120 / 20

20 is pretty low?

crabman
Member
crabman
2 years 7 months ago

” “2013 Central Surrey: New house costs $680K

–> Lot 380K, Building $300K

2002 Central Surrey: New house costs $320K

—> Lot 170K, Building 150K”

Inflation since 2002 has been about 30%. So 2002 prices adjusted for inflation would be:

–> Lot 220K, Building $195K, for a total of 415K.

Your “catastrophic crash” value is still 33% above inflation.

P.S. I love the comment about Surrey having run out of land!

Son of Ponzi
Guest
Son of Ponzi
2 years 7 months ago

Fellow bears!
The lazy, hazy days of summer are over.
The kids are back at school.
Traffic congestion is also back with a vengeance.
Did I mention the rain.
People are back behind their desks, collecting their meager paycheques, wondering why the heck they just bought an overpriced shack that will burden them financially for most of the rest of their lifes.
Bye,bye summer vacations, new car and decent clothes.
Hello, leaky roof, broken down fence and appliances.
And then the horror of seeing your equity going down the drain either quickly as this giant RE bubble bursts or slowly through a thousand price cuts.

YVR
Guest
YVR
2 years 7 months ago
RealtyCheck: “Now, where can these values possibly crash to?” It depends on how much rent or net income the 680K property can generate. If the house rents for $2000 per month then a good guess would be 240K to 360K which falls into the 10 to 15 price to rent range. Once the house is built the cost of building it is irrelevant. A perfect example is the Olympic Village. The developer went bankrupt because their cost to build it was higher than buyers were willing to pay. During bubbles building costs go up because of demand for the trades,… Read more »
YVR
Guest
YVR
2 years 7 months ago

RealtyCheck: “My circle that rents would buy in a heartbeat if prices in Surrey fell by $75,000. There is huge pent up demand at this price level.”

You are correct there will be lots of people that WANT to buy once prices are down another $75,000. The problem is most if those people will have already bought and or will not be able to get financing to buy. That is why the prices go down in the first place. Because the bubble runs out of greater fools who can get a mortgage.

Seafair Dweller
Guest
Seafair Dweller
2 years 7 months ago

Here is a link to the Economist’s latest article on global house prices. As in past articles, it indicates Canada’s market is overvalued.

http://www.economist.com/news/finance-and-economics/21584361-america-surges-much-europe-sinks-mixed-messages

Note that the % overvalued (compared to rent) figure represents a comparison of current real estate values and rental rates to their historical averages, NOT a comparison of the cost of owning versus the cost of renting.

Aggregator
Guest
Aggregator
2 years 7 months ago

“Once you own a plot of land after 25 years, it is yours, your kids”

LOL…By that time at the current tax vs income growth rate, your kids will be paying 15% of their income on property taxes alone.

An Observer
Guest
An Observer
2 years 7 months ago

KopyrightKlepto

It wasn’t subdivided. Look at the current description “26,000 +/- sqft(according to BC Assessment-with notice of possible change) offering approximately (subject to change feet) of waterfront”

Original realtor or seller got the size wrong – too busy making fake pictures

snake
Guest
snake
2 years 7 months ago

Can somebody explain WTF this realtor is smoking to come with price change?

http://univs.ca/property/mp-mount-pleasant-ve-vancouver-east-greater-vancouver-vancouver-bc-v6a-4h8/

Many Franks
Member
2 years 7 months ago

@snake: Ever see a paramedic apply a defibrillator to a dead body? It’s pretty much the same thing.

The difference is that a paramedic will have given up by the time 6 months roll by.

Son of Ponzi
Guest
Son of Ponzi
2 years 7 months ago

Aggregator # 18
Agree, rising property taxes will take a heavy toll on homeowers in the future.
Upgrades to dykes and earthquake protection costs will be in the millions.
Richmond estimates that these costs will be about 180 million just for Richmond.
http://www.richmond-news.com/news/new-provincial-dyke-standards-to-hurt-richmond-budget-1.498755

Saver
Guest
Saver
2 years 7 months ago

LOL, Many Franks, you crack me up.

@snake, scroll down and see price change history: 120k up, 120k down, 120k up, 120k down since March..LOL, dead corpse.

Son of Ponzi
Guest
Son of Ponzi
2 years 7 months ago

The Realtor’s name is T.S. Mock.
That should explain it.

so suit me
Guest
so suit me
2 years 7 months ago
S&P says US government’s lawsuit is “retaliation” Standard & Poor’s says the U.S. government sued the ratings agency as “retaliation” for its downgrade of the country’s credit rating. The Department of Justice filed civil charges against the rating agency in February and is seeking $5 billion in penalties. The government claims S&P refused to warn investors that the housing market was collapsing because it would be bad for business. It also says S&P knowingly inflated ratings of risky mortgage investments that helped trigger an economic crisis. S&P denies the claims and said in a court filing that it is being… Read more »
snake
Guest
snake
2 years 7 months ago

Many Franks Says:Ever see a paramedic apply a defibrillator to a dead body? It’s pretty much the same thing.The difference is that a paramedic will have given up by the time 6 months roll by
————————————-
They should have struck with original price and the place would sold by now, people got greedy

=============================================

Saver Says:scroll down and see price change history: 120k up, 120k down, 120k up, 120k down since March..LOL, dead corpse.
———————————-
The reason I posted that comment was I did scroll down

Kaycic's butler
Guest
Kaycic's butler
2 years 7 months ago

That deafening silence you hear is the sound of the Canadian housing bears gone quiet,” Bank of Montreal economist Robert Kavcic wrote in a research note Friday. “Not only has the resale market absorbed last year’s round of mortgage rule tightening, but the supposedly at-risk banks have just recorded a unanimously better-than-expected earnings season, with a handful of dividend increases to boot.”

from VMD’s mop and pail linkie poopie

Kvcic's butler
Guest
Kvcic's butler
2 years 7 months ago

http://www.bmonb.com/economics/reports/20110601/bb201106.pdf‎

Doug Porter is often quoted in the press regarding housing, CPI, and other fudgepacker government data. Porter teams up with Kavcic in this 2011 report, when Porter was with BMO.

ain’t it nice, reading these economist at their cozy jobs with untouchable Canadian banks?

RealityCheck
Guest
RealityCheck
2 years 7 months ago

South China Post ran an article today…

“Richmond BC Canada the first Majority-Chinese City outside of China”

Que the gazillionaires in Shenzen, Beijing, Shanghai, Hong Kong! We are on the radar big time! You haven’t seen nothing yet in terms of prices for land. If even 0.1% invest in Vancouver, the sky’s the limit!

Now who was talking about prices vs rents? Sorry Devore, but someone’s out to lunch. Check Shanghai’s prices to rent ratio…astronomical. Makes Van city look cheap!

Son of Ponzi
Guest
Son of Ponzi
2 years 7 months ago

The deafening silence of the summer lull will soon be followed by the stampede of panicky RE bulls running towards the cliff.

Kavcuc's butler
Guest
Kavcuc's butler
2 years 7 months ago

http://www.cowichannewsleader.com/news/221536601.html

this link is for Kavcic… please read it Robbie, especially the first part where it says “The housing construction bubble in Cowichan was a balloon in the first decade of the new millenium. Then it burst”

Son of Ponzi
Guest
Son of Ponzi
2 years 7 months ago

# 29.
The “gazillionaires” are not stupid to invest in a flood plain and earthquake zone.
But you are right about Richmond being a Chinese enclave.
Next Mayor will be Chinese born.

ChinaOne
Guest
ChinaOne
2 years 7 months ago

My cousin got 1 newspaper delivered to Ghanzou. My other cousin got 2 paper. We buy same Factory Business in Richmond over and over and over again and get Canadian citizenship.

My cousin buy 2 houses and my other cousin buy 3 houses already. They will buy same factory soon.

Son of Ponzi
Guest
Son of Ponzi
2 years 7 months ago

Factories in Richmond?
They’ve long ago packed up and moved to Surrey or Burnaby.
Only empty condo towers where they once were located.

RealityCheck
Guest
RealityCheck
2 years 7 months ago

Admin: please stop exaggerating the upvotes/downvotes

…or at least make it less obvious.

Best place on meth
Guest
Best place on meth
2 years 7 months ago

Listings galore today.

jesse
Member
2 years 7 months ago

“My circle that rents would buy in a heartbeat if prices in Surrey fell by $75,000”

You don’t have to get all uppity about someone pointing out that construction costs outpacing inflation can be consistent with falling real land values. Your friends are more than welcome to buy if prices drop by $75K; certainly nobody is holding a gun to their heads. (Though I don’t live in Surrey and don’t know your friends, so I cannot in all honesty validate that.)

Highly Sought-after
Guest
Highly Sought-after
2 years 7 months ago

Softy @ #7:
“It is more likely that the listing agent got the information wrong intitially.”

Or maybe the tide wasn’t out during the second measurement.
/sarc

paulb
Member
2 years 7 months ago

New Listings 369
Price Changes 125
Sold Listings 137
TI:16739

http://www.paulboenisch.com

logic
Guest
logic
2 years 7 months ago

down comes the rain, down comes the market

re bubble
Guest
re bubble
2 years 7 months ago
CAUTION: (HARD HAT AREA ONLY) falling re P R I C E S
Son of Ponzi
Guest
Son of Ponzi
2 years 7 months ago

70 stories Tower planned for the Westend.
The “Honglongnisation” of Vancouver is continuing.

http://www.straight.com/news/415311/west-end-towers-draft-community-plan

patriotz
Member
2 years 7 months ago

“Note that the % overvalued (compared to rent) figure represents a comparison of current real estate values and rental rates to their historical averages, NOT a comparison of the cost of owning versus the cost of renting.”

Those are the essentially the same comparisons, because the historical cost of owning versus renting is much the same everywhere – i.e. cheaper.

nostalgic for Canada
Guest
nostalgic for Canada
2 years 7 months ago
I know there used to be factories in Richmond because my dad used to work in one in the 80s. He used the money he made as a labourer in a Richmond factory to rent a whole house in Vancouver with a yard. He even made enough money so my mum could be a stay-at-home mum. Because they rented a big nice house with a yard, my mum was able to supplement the family income by babysitting. Everybody in my family is barely holding on to a basic standard of living today. Everyone is living in the Fraser Valley. When… Read more »
Loon
Guest
Loon
2 years 7 months ago

@nostalgic

+1000 for using the words local and chinese together.

Mike Bibi
Guest
Mike Bibi
2 years 7 months ago

” Everybody in my family is barely holding on to a basic standard of living today

and what that has to do with Chinese? shouldn’t you ask Canadian oligarchs what happened to your standard of living?

Many Franks
Member
2 years 7 months ago
Stephen “Inanimate-Carbon-Rod-The-Second” Poloz continues to yank on the “do nothing” lever as hard as he can. (Ahem.) Bank of Canada holds trend-setting interest rate at 1%: In the explanatory note to Wednesday’s announcement, the Bank of Canada says it intends no changes as long as considerable slack remains in the economy, inflation remains muted and household finances continue to improve. Household finances continue to improve, hey? The housing sector has been slightly stronger than anticipated, while household credit has continued to slow and mortgage interest rates are higher, the bank says, all of which point to “a continued constructive evolution… Read more »
Skook
Guest
Skook
2 years 7 months ago

The August stats for the Greater Victoria Real Estate Board (VREB) have been posted in VanPeak:

http://vancouverpeak.com/Thread-VREB-2013-Sales-Data-Greater-Victoria-REB?pid=5323#pid5323

jesse
Member
2 years 7 months ago

Strawman headline award contender:
“Why real estate doomsayers continue to be wrong”
http://business.financialpost.com/2013/09/04/canada-housing-doomsayers/
Warren Buffett was “wrong” on the tech bubble. And now look at him. 🙂

fixie guy
Guest
fixie guy
2 years 7 months ago

weasel words
n.

Equivocal words used to deprive a statement of its force or to evade a direct commitment; words used to avoid stating something forthrightly or directly; makes one’s views misleading or confusing.

e.g.: “a continued constructive evolution of household imbalances.”

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