BC, data, economy, hype, predictions, prices, supply

Vancouver House Prices Plunging

85
85 Comments

Get your hankies out, the unthinkable has happened.

Sellnoworbepricedin4evah shared this article at CTV news about Vancouver house prices ‘plunging‘.

It’s apparently gotten so bad that some houses are now selling for under one million. Horrors! What will become of housing in Vancouver!

Sutton West Coast realtor David Hutchinson has been tracking plunging prices and found several detached homes listed below $1 million, some of which had been recently renovated.

“If you want to sell, you have to be priced sharply, and you see a lot of price drops,” Hutchinson told CTV.

And even with price drops, he added, he’s seen many sale prices lower than what sellers are asking for. He said he knew of one home in the west side of the city that was initially priced at $3.9 million, but when it didn’t sell, the owners reduced the price. They kept reducing it in small increments, but eventually they couldn’t wait any longer, and had to drop the price by nearly $1 million.

Another home on West 8th in Kitsilano was listed for $2.5 million, but could only fetch $1.6 million.

“There’s not this crazy deluge of offers coming in like before, when you could price it below the market value and wait for all the offers to come in. That’s not happening anymore,” Hutchinson said.

“Buyers are being a little more picky now and you didn’t see that before.”

You know what this means right? Deal Time!

Anybody looking for a tear-down in a bad neighborhood for just under a million?

Read the full article here.

85 Comments
newest
oldest most voted
Inline Feedbacks
View all comments
trackback

[…] –Negative game changers in real estate –Vancouver a victim of its own success –Better off in Cape Breton? –Fed set to raise rates again –Average house price down 15% or more –West van detached falling $6300 per day –BCREA: Expect $1730 /week losses in 2017 – […]

0
0
trackback

[…] Ulsterman commented yesterday sharing an exchange with a local radio host.  Will the current price drops end up the start of something bigger or a rehash of 2009? […]

0
0
MarKoz

Danger Report!

There’s little doubt Canada’s real estate industry feels under siege these days.

Just check out the recent Danger Report commissioned by the Canadian Real Estate Association (CREA), which analyzes “negative game changers emerging in real estate.”

http://www.cbc.ca/news/business/real-estate-treb-crea-sales-data-1.3884233

0
0
southseacompany

“Bank of Canada maintains overnight rate target at 1/2 per cent”, Bank of Canada

http://www.bankofcanada.ca/2016/12/fad-press-release-2016-12-07/

0
0
Best place on meth

Another quick reminder:

Trump is about to make china illegal.

0
0
Combat roach

Yet to be seen if JT will be able to play along, who knows?

“Former prime minister Brian Mulroney foresees sunny ways ahead for Canada–U.S. relations once president-elect Donald Trump takes office next month.

“There’s movement going on between Canada and the United States at the moment, led by the prime minister, and I think it’s all positive,” Canada’s 18th prime minister told Rosemary Barton in an interview Tuesday on CBC News Network’s Power & Politics. ”

http://www.cbc.ca/news/politics/brian-mulroney-donald-trump-1.3884160

0
0
CanNeverThinkOfAGoodName

Trump is not your man. The only shaking up he will afford is a war.
https://www.theguardian.com/commentisfree/2016/nov/30/donald-trump-george-monbiot-misinformation?mc_cid=5ce5cb8b7c&mc_eid=08685f494f

0
0
Best place on meth

Just a quick reminder:

Prices for West Van detached are currently falling by $6,300 per day.

0
0
Best place on meth

These are calendar days, not business days.

That means there are 30 of them.

0
0
Best place on meth

I only bring up the number of days for those who are math challenged.

Obviously that excludes the chinese who are apparantly very good at math, according to legend.

0
0
Best place on meth

I have been informed that all 3 of my previous posts are racist, according to the REBGV, the Turdeau government, the Christy Clark government, the Moonbeam government, the Obama government, all of California & New England, every university/high school/elementary school/pre-school/day care/baby-sitter, CNN, Washington Post, NY Times, HuffPo, NBC, ABC, CBS, BBC, and CBC.

No comment yet from Xinhua.

0
0
YVR

$6300 per day. I wonder how long it will take before those bragging about their housing situation will be renters.

“What you own in West Van? Wow, that must suck. I pay less in rent per month than you lose in equity in one day. Do you pay a mortgage and property taxes on top of that? “

0
0
Funkey Monkey

One rental in west van.
https://vancouver.craigslist.ca/nvn/apa/5908890369.html

0
0
Combat roach

Thanks, amazing article and accurate to the bone. It would be great if some local MSM would publish it.

http://crosscut.com/2016/12/vancouver-real-estate-foreign-investment-lessons-seattle/

0
0
Newcomer

I doubt they’d publish it because the MSM is into all this fact checking nonsense, which really doesn’t fit well with creative efforts like this.

0
0
Oracle

Great article. Goes to show how corrupt our local officials are. We need a organized response. We ourselves here couldn’t do it as we are already on the radar. What we can do is spread the word and Hopefully a fringe group rises and we latch on.

0
0
bullwhip29

Local mom wants ‘birth houses’ regulated after losing $1,000 deposit
http://bc.ctvnews.ca/local-mom-wants-birth-houses-regulated-after-losing-1-000-deposit-1.3192617

0
0
space889

When have we heard this kind of talk before? How did the last few times turn out?

0
0
YVR

“When have we heard this kind of talk before?”

2008 in the US
1992 Japan

“How did the last few times turn out?”

The US and Japan crashed 70% in the bubble cities.

0
0
Combat roach

Vancouver will be a litmus test if epic housing crash could happen in Chinosphere at all. So far the master-shithole resisted all shocks regardless of the all their economic, social engineering experiments and crazinesses. Now is time for satellites to probe their robustness and their reliance on the headquarter to keep them afloat.

0
0
patriotz

HK crashed over 50% in the late 90’s. Chinese enough for you?

US markets with large Chinese populations (e.g. SF, LA) crashed more than the national average in the bust of the last decade.

0
0
Bear Vancouverite

That’s pong before the rise of wealth in China so isn’t comparable at all. I bet you not a single person in HK was worried about foreign buyers or foreign wealth or wealth immigration at time, it simply didn’t exist as

0
0
Oracle

For all you with some sense of reality, the biggest change over the last 5 years with regards to mortgages are the Nov 30 changes. Bar none.

0
0
Oh oh

The further the good news spreads that prices are rapidly falling the more Oracle attempts to differ. Seems to me he is a realtor. Go away

0
0
Best place on meth

He can only go away for a short time.

Whoreacle is the human version of herpes.

0
0
Oracle

Don’t be shocked by the odd low selling price of RE. In those cases, part of transaction done overseas. Happening more often these days.

In the Indian community, land exchanges in India and that goes towards paying for a bulk of real estate cost here. However, those sales are not on MLS.

Nowadays, it’s happening on MLS. People don’t care as they know the politicians and. Ureacrats are corrupt like everywhere else.

I told a wannabe politician to set up a foundation in his name. LMAO.

0
0
Combat roach

Do you work for police? If not you should, you have rare talent.

0
0
YVR

So now money from RE is moving out of Canada? Get your story straight.

0
0
Billybonger

Wonder if Oracle’s revised call for 7,000 listings by year end will come to pass.

Lots of price reductions.

No tsunami of listings. Yet.

Let’s see what comes.

0
0
Best place on meth

Year end, no.

Jan 2, yes.

0
0
Hyper-mega-Bull

that house in east van which sold for $800k seems too good to be true. i suspect the sale is crooked and designed to reduce capital gains tax. i have no proof and am only speculating.

also close to year end when someone knows what their tax situation will be.

0
0
YLTNboomerang

Even if that was the case, the sale is recorded at the lower price and this becomes the new comparable for future sales in the area. Once crooked sale accelerates the decline for all future sales.

0
0
Hyper-mega-Bull

if your neighbor sold their house for below market, would you accept less than market value?

obviously not. neither would anyone else.

0
0
Bear Vancouverite

Market value is whatever people are paying for comparable homes, it your neighbour sells for a certain price he’s setting the market value. This is how it works going up and going down, otherwise as it’s going up we can all say:

“If your friend just paid far above market value would you accept paying above market value?

Obviously not, and neither would anyone else. ”

Buy that’s not how things work.

0
0
YVR

Why would they have listed in on the MLS at all? If it was such a deal just sell it for all cash.

It is easier to just not delcaire a capital gain on a RE sale then try to deposit $100s of thousands in cash. That is cash you cannot invest or buy other RE with unless you declare it. Face it you are getting desperate. Prices are crashing.

0
0
bullwhip29

could have been two industry parties involved to deliberately create a lowball print for all naive fools to see with the intention of shaking the tree so to speak and draw out weak handed buyers. no way an outsider would have been able to scoop that place up imho. expecting 2-3 mos of this before krusty hints at possible revisions to the foreign tax

0
0
YVR

Even if they reverse the foreign tax (they won’t) the foreign money is not coming back. No foreigner is investing in a falling market, with a falling currency in a province that burned them already.

0
0
bullwhip29

remember, they dont look at this as an investment per se, but rather a better alternative to keeping cash in china. what we are witnessing in toronto and other cdn cities is proof that this (vs vanc’s mtns and oceanviews) that is the motivating factor. if krusty offers up a tasty opportunity to triple down, they’ll be back at the trough for another helping

0
0
Newcomer

You list it. It doesn’t sell. You get a low ball from a friend with an under-the-table sweetener.

People who are selling on the open market and list at 1.4 then drop to 1.2 don’t take 800 without first dropping the price on the MLS to 1.0 to see if there are any takers.

0
0
Funky monkey

Maybe the previous owners passed away leaving it to the children, and the kids wanted a quick sale.

0
0
bullwhip29

we’ll see. either way i betcha this place will be back on mkt in under 6 months with asking price of 1088000

0
0
Sebastien

Call me paranoid but maybe this CTV article is a false flag in order to “test” how the public would react to bad real estate news. They picked the worst price drops and magnified them. Don’t get me wrong, prices are going down but not that low. Get ready for a lot of mix messages in order to change the secular downtrend. The F.i.r.e industry will use the confusion to fool new people in the market.

0
0
Hyper-mega-Bull

i agree there is something fishy about the sale. personally i think it was partly cash under the table to evade taxes, either foreign buyer or capital gains.

0
0
Kim

Not easy to launder several hundred thousand dollars in cash. What are you going to do? stash it under your bed? You put several hundred thousand in cash into your bank account and your bank will report you to the feds.

0
0
Newcomer

You could make part of the payment overseas or offshore.

0
0
Confucius

So one side is getting their money out of China and the other is going back? Why would the other person do that? If they are doing it in a third currency, why not just do that and skip the home purchase? The purchase does appear lower than the current value, but maybe it has an underground oil tank or some other massive expense.

0
0
Newcomer

It doesn’t have to be China. I don’t know what scenario you are imagining, but it’s easy enough to say, I’ll knock 20% off the price if you cut me a check for 800K in Canada and give me another 400K back home, or in the States, or as an in-kind payment, or whatever. I get a smaller tax hit and you get a lower price.

0
0
Confucius

My scenario is money laundering, the scenario you are imagining I presume is about evading the foreign tax.

0
0
Newcomer

Or capital gains, or both.

0
0
bullwhip29

which is why they dont put it in the bank and rent safety deposit boxes anonymously or lock in home based private vaults

https://internationalprivatevaults.com/about-us.html

0
0
sdfasdf

HSBC opens until 5, just give them a call

0
0
Hyper-mega-Bull

you don’t understand how things are done in this city. it’s a trivial matter.

people do it every day. but they know enough not to discuss it around stuffy white people who are going to start ranting about “rules”.

0
0
Newcomer

I don’t think you are agreeing with him. I think he thinks that the article was written as part of some sort of conspiracy, whereas you just think this is an isolated case of tax evasion.

0
0
bullwhip29

MSM will simply hop on board whatever the story of the moment happens to be, nothing more. i betcha if some random tried to buy that place for 825000 or some other higher price they would hve been outbid by a $1 just like you see on ebay auctions

0
0
Newcomer

The basic rule of journalism is run whatever people feel compelled to watch. They don’t have the skills, manpower or motivation to get involved in conspiracies.

0
0
YVR

You have a creative imagination trying to avoid reality. Do you hang with Oracle?

0
0
Oracle

Part of transaction funds exchanged overseas. For whatever reason. Jewellry, land, etc, who knows.

How hard is it for you guys not to see the loopholes?

0
0
YVR

Maybe prices never went up in the first place. All sale prices were fake. Buyers were given jewelery overseas.

0
0
Sebastien

Agree. Maybe someone’s daughter was also thrown into the deal.

0
0
bullwhip29

agreed. mentioned this in prev thread. lowball sale among friends done openly to set the bar lower. agents will now try to arm twist naive homeowners to unload to their clients at similar prices

0
0
patriotz

But the recorded sales price becomes the buyer’s cost base for capital gains when he eventually sells the property (unless it’s a principal residence, which excludes foreign buyers anyway). The buyer would then have to resort to a similar scam when selling just to pay the normal level of capital gains tax.

I would expect this sale to draw the attention of BC PTT or CRA auditors too.

0
0
mo yan

CRA no, not when they use REVENUE/audit hr. Fuuck CRA

0
0
Oracle

There is no crash going on. LMAO.

To please the dumb portion of renters so they vote Lib.

How can you “smart” people here not see that?

0
0
Funky monkey

You must be a real estate agent.

0
0
Newcomer

Oracle is a thirty-year-old woman, living in her parent’s house and dreaming of being able to rent somewhere for the $500 a month that her budget allows.

0
0
Oracle

And you are dreaming about getting a detached home in Vancouver for less than $1 Million. What’s that?

0
0
YVR

All it takes is one sale to set the new lower price. We have a SFH in E Van for $800K and a Westside SFH for $1.6M. Both are crack shacks but that covers about half of YVR houses. With crack shacks fetching little in rent, few owners who want to live in them and nobody buying to build we should see more sharp price cuts coming for crack shacks.

0
0
paulb

New
108
Price Change
25
Sold
61
TI:8622

http://www.paulboenisch.com

0
0
paulb

New
108
Price Change
25
Sold
61
TI:8622

http://www.paulboenisch.com

0
0
Ulsterman

I sent an email to Lynda Steele on CKNW because she stated that she was confused by the local market. Some say prices are down, and yet others say they’re going up. Then they quoted the BC Assessment report that came out today and is warning that assessments will be up 30-50%. I explained in my email that since prices peaked in Spring 2016, they had since made a fairly significant correction. She responded and asked if i were a realtor. I replied with: No, i just take a keen interest in the local market but i have no “official” expertise. But neither do i make my living from encouraging people to buy or sell a house, so I have no vested interest either. It’s always a good time to buy or sell according to BC Realtors, so when i… Read more »

0
0
Just me

As much as I like what you wrote, I will believe it when I see it.
I have seen this market defy crisis and over-leveraging before. I don’t put much faith in a major correction any more.
Of course I would love one. Not the least to see all these speculators losing their pants!
They are the worst, trying to profit from other people’s troubles.

0
0
Newcomer

That’s like saying you don’t believe in gravity anymore. I have given up trying to guess when market forces will do their thing, but it has got to happen sometime.

0
0
Oracle

These are market forces. It’s called HAM!

0
0
Newcomer

Koolaid drinker.

0
0
Oracle

You are right. That’s a psychological wishful thinking that a correction will take place. I know I sound like an a hole but watch what happens in spring.

Going forward, you will see lots of odd transaction prices because deals done overseas.

The underlying fundamentals havent changed. The Rich from china want to come here. Mostly via foreign students route.

Prices have detached from incomes more than a decade ago so no sense using that metric.

What’s happening now is rents are detaching from incomes due to the influx of temporary immigrants including foreign students.

Prices in satellite cities (Victoria, Kelowna, Bellingham) are spiking because local speculators are buying there cause they see what’s gonna happen to Vancouver.

Ridicule me all you want but just wait 4-5 months. Not long. You will see.

0
0
Confucius

Most people realize this is happening because the boomers are cashing out at the top and getting the hell out of Chinatown.

It was wishful thinking to think that prices would fall just because prices were ridiculous although credit was gushing, rates were decreasing and HAM was going full throttle. All of these have reversed or are reversing now. It’s wishful thinking to think that prices will suddenly bounce again without those previous conditions in place. It’s wishful thinking to own sawdust in Grandview Heights believing it will one day become the centre of the lower mainland.

0
0
space889

But when bears buys properties from distressed sellers who are in financial hardship and trouble, that’s not trying to profit from other people’s troubles? Seems to me they are simply different side of the same coin.

0
0
Confucius

Who said bears are a charity? I held off on buying and have gone through a lot being wrong. Bulls with no self esteem gloated and tried to make us feel even worse. Many of us just wanted to avoid being caught in the train wreck that is happening now or will certainly happen at some point. I feel sorry for many who purchased in the Srping, many were bears that capitulated and their worst nightmare appears to be playing out now. We’ve all been through a lot and I put all the blame on the government and their lack of oversight or willing participation in this gargantuan bubble.

0
0
Boombust

Nobody held a gun to their heads; they didn’t HAVE to buy anything.

0
0
Newcomer

You are right. Profiting from someone’s troubles is just another way of saying, meeting a need.

0
0
patriotz

People put properties on sale because they want someone to buy them. Sellers profit from having a buyer, and buyers profit from having a seller. That’s why people buy and sell things. Duh.

0
0
Oddball

Always with the negative waves, Moriarty, always with the negative waves.

https://www.youtube.com/watch?v=aT9Lm4Y886k

0
0
Ulsterman

Apologies for the doubling of the post – got a little too excited by being “first.”

0
0
Oracle

Ugggh

Sorry man, but set the bear case back a while.

0
0