Real Estate Talks

ETB has no comment because he/she is waiting for stupid buyers dumber than him to by at crazy prices. He's so dumb that he thinks his home will be worth west side prices soon. He's so dumb that he turned down a million $ offer. Why would you comment and explain your idiocy when you are that wrong and dumb? You can't, because it's to embarrasing

HAM, it's worth west side price now.
And we've turned down a lot more than 1M...nearly double

Reality check!!!

According to Barrie Vattoy's latest numbers the gap between the Eastside and the Westside is now even bigger than ever.

Eastside SDH, March 2016 - $1,288,400

Westside SDH, March 2016 - $3,072,000

When you bought your distant Eastside teardown, quite liveable SDHs on the Westside were selling for only about $600K more. Those days are long gone but, if and when the big bust hits, the huge gap could decrease again as prices tumble.

Van West detached in Dec 2012 when the HAM post was made... $2,031,000
My house now... $2M

That future is now

My bet is 90% of owners, if not more, will say, yes but if I sell high I have to buy high. Few have the stones to cash out, rent, and try to time a crash. Those who have tried are littered on the side of the road in chopped-up pieces.

For many, no matter the price, only their children will see the money, and guess what they will use it for.

My bet is 90% of owners, if not more, will say, yes but if I sell high I have to buy high. Few have the stones to cash out, rent, and try to time a crash. Those who have tried are littered on the side of the road in chopped-up pieces.

For many, no matter the price, only their children will see the money, and guess what they will use it for.

+1

From my point of view, the only advantage in dramatically rising prices is if you cash out to move to a different (cheaper) market or if you hold multiple properties and cash out just part of your RE holdings and grab at least some of the crazy gains while they are still available.

The sad part of insane price rises is the reality that most folks are being locked out of moving upmarket as the price gap widens. Also, their kids are being locked out of the neighbourhoods and types of housing they grew up in.

Example: Parents have a $50K deposit, take out a $450K mortgage and buy a house for $500K. Over the next decade the value skyrockets to $1.5 million and the remaining mortgage is now about $300K. The parents die and leave the property to their three children who sell it and divide the approximately $1.2 million equity. They each have $400K deposit but if they want to buy the same type of house as their parents they will each need a mortgage of $1.1 million. Ouch!

The kids futures are ruined, they have to move to Saskatchewan if they want a nice house, and they don't live happily ever after, but their parents did get to gloat about their equity for a while.

Another sad possibility is that the parents feel "wealthy" because of their paper gains, so they take out a big HELOC to buy a new car, a boat and a few fancy vacations. Why not when money is so cheap? Unfortunately, interest rates take off, property prices plunge. the bank calls the HELOC and the parents are underwater on their mortgage. Sorry kids, bankrupt parents means no inheritance.

I would be much happier if prices (over the long term) tracked at or near inflation, as they always have in the past. It seems likely that those historic norms will eventually return, but gambling on exactly when is a mugs game.

Reality check!!!

According to Barrie Vattoy's latest numbers the gap between the Eastside and the Westside is now even bigger than ever.

Eastside SDH, March 2016 - $1,288,400

Westside SDH, March 2016 - $3,072,000

When you bought your distant Eastside teardown, quite liveable SDHs on the Westside were selling for only about $600K more. Those days are long gone but, if and when the big bust hits, the huge gap could decrease again as prices tumble.

Eyesthebye2 replied:

Van West detached in Dec 2012 when the HAM post was made... $2,031,000
My house now... $2M

That future is now

Time for another Reality Check!

Eastside SDH, March 2016 - $1,288,400

Westside SDH, March 2016 - $3,072,000



Eastside SDH, Dec 2012 - $828,800

Westside SDH, Dec 2012 - $2,006,500



Back in Dec 2012 the price gap between the benchmark SDH on the Eastside versus the Westside was $1,177,700 but now it's $1,783,600. So just the gap has grown by about the entire purchase price your current house, wow! If you ever want to live in a desirable part of this city you are falling further and further behind, and yet you seem thrilled by that.

Of course, if you have access to a time machine, you could sell your Eastside teardown now and transport the money back to 2012 and buy a Westside house. Now there's a great plan.

If you don't have a time machine you are faced with the reality that the nice neighbourhoods keep moving further and further from your grasp. Sorry 'bout that.

most of them are dripping with envy. Wait till they find out that news came out today that even in toronto houses are risingby $600 a day. you don't see jealous people whining that a german car is OMG too expensive the HUMANITY!!! only a certified moron(tm) would buy than rent if it was known that increases would be so slow

That's exactly why listings are at an all time low. Sales too fast and too high and not giving potential sellers any confidence that they'll find a suitable property if they sell.
I dont see that changing anytime soon.

My bet is 90% of owners, if not more, will say, yes but if I sell high I have to buy high. Few have the stones to cash out, rent, and try to time a crash. Those who have tried are littered on the side of the road in chopped-up pieces.

For many, no matter the price, only their children will see the money, and guess what they will use it for.

That's exactly why listings are at an all time low

New listings are coming on the market at the same pace as most years. So yes people aren't for the most part cashing out and moving except for lifestyle reasons. I expect younger generations are scratching their hairy domes wondering beyond wonders why the Olds don't seem to care too much for a little bit more money.

It's going to take a lot more than a million or two to change my life much. All I'd get out of it are slightly snobbier neighbours or a pain-in-the-rear-end garden to attend. Meh I'd rather hang out under the bridge with Geezer and Johnny Whoreton.

Lordy, Geyser, you are horrible at math.

Do the calc again and you'll see that the price gap hasn't changed at all.

Congrats to ETB.

Do the calc again and you'll see that the price gap hasn't changed at all.

It's probably best to take your own advice...

In the world of money dude, value is all relative.

Of course, if you have access to a time machine, you could sell your Eastside teardown now and transport the money back to 2012 and buy a Westside house. Now there's a great plan. :lo

Regular folks dont live on the west side. Even if we could afford it we dont speak mandarin and we're far too neighbourly for the kind that are living there now. I also wouldnt live in Richmond for the same reasons.
West side has become a nice place to visit, but...

This is from The Province on June 5th. 2014:

In a new study, Altus Group looks at the price trends of the past 10 years in Vancouver and calculates the stratospheric gains that could materialize if history repeats.

In 2004, the average west side older detached house sold for $835,101, and this March the average price was $2.48 million.

In comparison a similar home on the east side sold for $416,674 10 years ago, and the current average price is $942,555.

“If trend continues, in the year 2024 the average price for older stock could be greater than $2 million on the Eastside and $7 million on the Westside of Vancouver,” author Pedro Tavares writes.

Tavares says Altus Group isn’t predicting such gaudy price gains, but is “simply applying the math from the past decade and extrapolating forward to the next decade.”

But UBC urban economics and real estate expert Tsur Somerville says it is unlikely the boom seen in Vancouver over the past 10 years will happen again.

I agree with über-bull Tsur, that it won't happen, but nobody can deny the ever widening price gap between house prices on the Westside and the Eastside.

ETB joined the party late but the price gap between the Eastside and the Westside has continued to widen because of the very obvious differences in desirability and livability. I accept the fact that people who can't afford the Westside will be more comfortable claiming they wouldn't want it even if they could afford it. I hear similar protestations from men with ugly wives, they claim that beautiful women are "too high maintenance", or "too self-conscious", or any of a dozen more reasons why they are happy with their ugly wives. It makes an unpleasant life much more bearable if they can convince themselves that they are happy with what they are stuck with. Call me cynical but I don't buy their protestations.

Of course, if you have access to a time machine, you could sell your Eastside teardown now and transport the money back to 2012 and buy a Westside house. Now there's a great plan. :lo

Regular folks dont live on the west side.

Yes they do. It's just your idea of "regular folks" which may be distorted.

Even if we could afford it we dont speak mandarin and we're far too neighbourly for the kind that are living there now. I also wouldnt live in Richmond for the same reasons.
West side has become a nice place to visit, but...

Ha! There goes the race card again. Hilarious. And I bet you've never been attracted to really good looking members of the opposite sex either.

In fairness, I can see that being neighbourly is forced upon you when you share your home with renters, and houses with basement suites are all round you. Nothing wrong with crowded community living if you like that kind of thing, but not everybody does. Privacy can be pleasant.

Of course, if you have access to a time machine, you could sell your Eastside teardown now and transport the money back to 2012 and buy a Westside house. Now there's a great plan. :lo

Regular folks dont live on the west side. Even if we could afford it we dont speak mandarin and we're far too neighbourly for the kind that are living there now. I also wouldnt live in Richmond for the same reasons.
West side has become a nice place to visit, but...

Thats one of those for sure moments, and in addition the other person is like what do they say a poster person for interpersonal skills as he or she openly admits to not wanting to be near others LOL

Do the calc again and you'll see that the price gap hasn't changed at all.

It's probably best to take your own advice...

One other part is that the two major sections of Vancouver are so narrow and together its not even funny. Its well known that good looking humans and objects require more funds and actions to maintain them and in the case of people thinking about themselves a lot.