Is it me or is the Westside getting creamed?

[timber2012]

All I see is deep price reductions and houses selling for 6 figures off original asking.

If the west side being sky high is the reason that a lot of money is moving east in Vancouver - will the opposite be true?

[Warren12]

All I see is deep price reductions and houses selling for 6 figures off original asking.

If the west side being sky high is the reason that a lot of money is moving east in Vancouver - will the opposite be true?

How about some examples?

[vanrealtalk]

example:
http://vancouverpricedrop.wordpress.com/
page 3 for Vancouver west side

[curious]

Very informative website. Thank you, vanrealtalk.

I like that example:

Address: 4492 CROWN ST, Dunbar, Vancouver West

March 09 V933847 $2,268,000 $0 0%
March 17 V933847 $1,985,000 $-283,000 -12%
April 12 V933847 removed
April 18 V943874 $1,980,000 $-288,000 -13%
May 10 V943874 $1,790,000 $-478,000 -21%

Assessment: $2,048,500

Prime 50′ Dunbar lot 2 blocks to St. Georges Secondary and Elementary! Bonus is cute updated character 2400 sq.ft. bungalow with 4 bedrooms 1up (could be 2up), 3dn. Family room on main easily converted to 5th bedroom. Enjoy eastern exposure backyard with flanking lane (great for laneway house). Excellent family home to expand, or redevelop. Fantastic location next to UBC Pacific Spirit Park trails for jogging, biking, etc. View photos online and call for private showing!

[timber2012]

All I see is deep price reductions and houses selling for 6 figures off original asking.

If the west side being sky high is the reason that a lot of money is moving east in Vancouver - will the opposite be true?

How about some examples?

Friday - May 25, 2012

7 new listings.

9 price changes - all decreases:

Address - Old Price - New Price - Change in K
4460 W 6th - 2.748M - 2.640M - (108)
3760 17th - 1.698M - 1.598M - (100)
160 59th - 1.35M - 1.28M - (70)
475 38th - 2.99M - 2.78M (210)
5637 Baillie - 2.348M - 2.331M (17)
4452 Crown - 2.68M - 2.55M - (130)
1816 McNicoll - 2.498 - 2.35 - (148)
5276 Blenheim - 3.388 - 2.998 - (390)
3348 - 3352 3rd - 2.198 - 1.988 - (210)

1 sale:

2965 W 34th - new house - Originally listed at $2.899M on Sept 30/11 - Sold for $2.45M. HST Exclusive. For those scoring at home, that's a $449K discount for those scoring at home.

Maybe the list prices were too high and these people had unrealistic valuations. Maybe they have already purchased their new house and have to unload the current one. Maybe, just maybe, buyers aren't there.

I do think these are genuine sellers though. If I put my house for sale at a crazy price and don't get a bite, I take it off the market. Not reduce the price.

[curious]

Maybe the list prices were too high and these people had unrealistic valuations

Yes, today, many sellers are very unrealistic.
At the same time, there are some a little bit desperate sellers who scream at their ads "priced below assessed value!".
I also noticed that some sellers start offering $5K and $10K "decorators'a allowances". "Decorator's allowance" means giving back cash to the buyer on completion, is such thing legally correct?

[timber2012]

Early returns today for Warren12's benefit:

Address - Old Price - New Price - Change in K

1106 w49 - 3.680M - 3.480M - (200)
4393 Puget - 2.895M - 2.795M - (100)

One sale:

1317 w64th - sold for 1.179M - original list at 1.288M - $109,000 discount to original list.

Not saying this is going to continue but it's a trend I've been noticing which stood out like a sore thumb on Friday.

But should this continue, does the East side remain so hot?

[gse36]

east side is hot b/c its the only part in vancouver that most locals can still afford.

west side seems slow perhaps b/c offshore money is paused (at least temporarily). if that should remain the case, west side prices should fall further, and be within reach of the higher echelon locals. the 2 million dollar question is what is "within reach".

it will matter greatly on interest rates. so if you get a slowdown in offshore money, and increased interest rates in the next few years, then that won't bode well for west side.

then again if west side goes to 1.2M for a decent home, then you won't see those $1M vancouver east decent homes anymore. they will be less.

[timber2012]

Couple more for Warren12:

8328 Tugboat Pl - 1.538M - 1.388M - (150)
4449 Pine - 4.388M - 3.88M - (508)

Second sale of the day:

2842 W24th sold for 1.548. Originally listed for 1.688M. $140K off original ask.

If I was building on spec in the westside - I'd be getting a little nervous. Although, this is Vancouver, the market blinks and it's up 10% in a month.

[eyesthebye]

east side is hot b/c its the only part in vancouver that most locals can still afford.

west side seems slow perhaps b/c offshore money is paused (at least temporarily). if that should remain the case, west side prices should fall further, and be within reach of the higher echelon locals. the 2 million dollar question is what is "within reach".

it will matter greatly on interest rates. so if you get a slowdown in offshore money, and increased interest rates in the next few years, then that won't bode well for west side.

then again if west side goes to 1.2M for a decent home, then you won't see those $1M vancouver east decent homes anymore. they will be less.

+1
agree with everything here.
Offshore money still here in pockets. Because locals are not competing for the same properties it means offshore are getting these at less than asking price now
i.e.
3523 23RD AVE W
4478 15TH AVE W
1827 37TH AVE W
etc.

[timber2012]

east side is hot b/c its the only part in vancouver that most locals can still afford.

west side seems slow perhaps b/c offshore money is paused (at least temporarily). if that should remain the case, west side prices should fall further, and be within reach of the higher echelon locals. the 2 million dollar question is what is "within reach".

it will matter greatly on interest rates. so if you get a slowdown in offshore money, and increased interest rates in the next few years, then that won't bode well for west side.

then again if west side goes to 1.2M for a decent home, then you won't see those $1M vancouver east decent homes anymore. they will be less.

+1
agree with everything here.
Offshore money still here in pockets. Because locals are not competing for the same properties it means offshore are getting these at less than asking price now
i.e.
3523 23RD AVE W
4478 15TH AVE W
1827 37TH AVE W
etc.

The $1M question is - if westside is going to continue slumping will offshore backstop or will it continue to plummet bringing local money back and having a negative impact on the rest of the lower mainland.

[timber2012]

2128 W22 - Sold for $2.338M - Asking $2.398M ... not bad until you look at the original asking $2.788M. $450K under the original asking price.

Price reduction on 4077 36th - 5.688M - 4.998M - (689)

[fishguy15]

Because locals are not competing for the same properties it means offshore are getting these at less than asking price now

Hmmm...so it was locals that were bidding prices up?

[timber2012]

Because locals are not competing for the same properties it means offshore are getting these at less than asking price now

Hmmm...so it was locals that were bidding prices up?

sshhhhhhhh

[gse36]

this isn't really a good sign. i remember in the 90's we saw a lot of these during the correction. question is whether we will see more of these.

case in point:
3743 W19th Ave
Paid 1.68M Aug 31, 2011. (looks like a mainlander)

Now asking 1.87M.
"Property under construction. HST on top. Current price includes land value & cost of demolish, architect design & drawings, permits application & foundation construction. Call listing agent for details. Please drive by."

So the guy is bailing out while the house is under construction. pretty risky. the price isn't a real bargain (HST ON TOP!!!!). land price is around 1.5-1.6M now. so the guy is trying to recover all his costs. as a buyer, i'd only consider this if it were a discount to his costs (permit, foundation construction, drawings, etc) -- otherwise i would just pay full price for my own custom home.

1.87+HST = 2.1M.

You're better off buying land at 1.55 in the area + permits + foundation + design. come in at 1.6-1.625M!

perhaps the guy is just fishing. or greedy.