Vancouver Price Drop

Documenting Vancouver real estate price movements

Preview of Next Report – September 11, 2012

Here is a mini preview of a new report showing flips gone bad – this is not a complete list, just a small sample from East Vancouver which was supposed to have done relatively well this past year.

Transaction costs are determined by taking PTT of 1% of first $100K and 2% of remainder for purchase price, realtor fees of 8.4% of first 100K and 2.8% of remainder for selling price (these are standard rates after HST is charged on commission)  plus $4000 flat rate for all other fees on the 2 transactions

Address:3250 E 50TH AV, Killarney, Vancouver East

March 09 V932047 $948,000 $0 0%
May 01 V932047 removed
June 08 V955363 $889,800 $-58,200 -6%
Open House: Jun 10
Open House: Jun 17

Assessment: $846,600
Last Sale: $930,000 on 18/Jul/2011

Net Loss IF sold for asking price = $52,114 in transactional costs + $40,200 in loss = $92,314 loss

Prime Killarney location near Killarney High School & community centre & transit, solid clean house with 4 bedrooms & 2 full bathrooms. Large master bedroom. Excellent to move in or investment property in Killarney area with over 4400 SF lot or to build approx 3080 SF house. Open House, Sun, June 17th, 2-4PM. Priced to sell. Please come & try offer!

Address:3214 E 45TH AV, Killarney, Vancouver East

June 11 V955799 $1,328,800 $0 0%
Open House: Jun 17
Open House: Jul 08

Assessment: $1,299,000
Last Sale: $1,275,000 on 17/May/2011

Net Loss IF sold for asking price = $71,306 in transactional costs + $53,000 profit = $18,306 loss

Must see this lovely 5 year new 2 level home on large 52 X 119 lot in prime Killarney! This spacious 8 bedroom and 4 bathroom home features new appliances, fully fenced entertainment sized private yard with patio, granite and hardwood floors throughout, granite countertops in kitchen & bathroom, alarm system , cozy gas fireplace, bright skylights, 2 fully finished ground level suites and just steps to bus, schools & shopping!

Address:# 103 1516 CHARLES ST, Grandview, Vancouver East

September 02 V969030 $335,000 $0 0%
Open House: Sep 08
Open House: Sep 09
Open House: Sep 15
Open House: Sep 16

Assessment: $294,500
Last Sale: $329,000 on 11/Apr/2011

Net Loss IF sold for asking price = $24,560 in transactional costs + $6,000 profit = $18,560 loss

A Gardener’s Delight! Huge outdoor deck area with this large1 bedroom corner unit at one of Commercial Drive’s best buildings “Garden Terrace”. Nicely updated kitchen, bathroom & laminate flooring throughout. Very well laid out with a large bedroom, separate dining area off the galley style kitchen & an oversized living room featuring a cozy gas fireplace. Sliding glass doors onto your own very private, South facing urban oasis. The perfect place for summer entertaining! Great building with newer roof, updated plumbing & exterior paint. Rentals allowed & very pet friendly! Proactive strata council & nice community feel to the building. Just 1 1/2 blocks to the heart of “the Drive”. Open house Sat/Sun, Sept. 8th/9th 1-3pm.

Address:# 302 2133 DUNDAS ST, Hastings, Vancouver East

May 05 V947899 $238,000 $0 0%
May 17 V947899 $229,900 $-8,100 -3%
Open House: May 19
June 28 V947899 $224,900 $-13,100 -6%
Open House: Jul 29
Open House: Aug 18
Open House: Aug 26

Assessment: $247,000
Last Sale: $215,000 on 16/Feb/2011

Net Loss IF sold for asking price = $19,197 in transactional costs + $9,900 in profit = $9,297 loss

Open House August 18, from 3:30pm-5pm.


8 responses to “Preview of Next Report – September 11, 2012

  1. gokou3 September 11, 2012 at 2:20 pm

    Great work as usual! Including a % loss figure would have been nice too.

  2. prairieperson September 11, 2012 at 2:29 pm

    Isn’t 1,328,800 – 1,275,000 = 53,000?
    Wouldn’t it be 71,306 – 53,000 = 18,306 loss?

  3. prairieperson September 11, 2012 at 2:31 pm

    That’s a big, unlikely IF for all of them. Add in the fact that the govt may now seriously start looking at flippers falsely claiming their flips as personal residences and the losses could become serious.

  4. Ray September 11, 2012 at 2:59 pm

    What’s considered a flip? Anything purchased in any month of 2011? Any manual components of this report? If not, maybe let it run for every home you have data for — and post the self-updating report weekly on your website for all homes… it would be the biggest hit of the century, probably crash your server, as you help home flippers everywhere understand their real costs.

    • an observer September 11, 2012 at 3:05 pm

      I’ll probably rename it and remove the word flip. I suspect some will be flips, some will be builders / owners planning to build who instead try to get out or people who realize they can’t afford the place they bought.

      Unfortunately a lot of this is manual but still should make for some interesting results

      • Nom Nom Nom September 13, 2012 at 11:04 am

        I would define a flip as any home that was re-listed within 12 months of purchase, thereby making it a taxable transaction?

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