Vancouver Price Drop

Documenting Vancouver real estate price movements

Happy New Year

We’ll be back with the drops on Monday, have a happy new year!

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16 responses to “Happy New Year

  1. bailinginbc January 2, 2013 at 8:01 pm

    Happy New Year to you good sir. Hope you enjoy your well deserved break.

  2. Kelly January 2, 2013 at 8:23 pm

    Happy New Year!!!!!!! Interesting the notices of assessment that came out today!!!!!!

  3. JimH January 2, 2013 at 8:44 pm

    Thanks for your hard work and timely data.
    As a Canadian/American who watched the 2007-2008 meltdown that is still just barely struggling to find a bottom, I have been watching in awe as Canada demonstrates that while history may not repeat, it does indeed rhyme…

    • an observer January 3, 2013 at 12:00 am

      It is both funny and strange that we copied what happened in the US all the while repeating how much smarter we Canadians are. We have more debt, higher price/income, higher price/rent, higher % of ownership, lower savings (way into the negatives) than the americans ever had and yet can’t see the obvious…

  4. kansai92 January 3, 2013 at 1:26 am

    thank you for this website.
    stats like these are invaluable in navigating past the crap we call MLS

  5. data junkie January 3, 2013 at 9:18 am

    Thanks again to observer for providing this amazing (and oft-hilarious) source of information!

    To tide the crowd over before next week’s dose of losers and quitters, here’s this week’s Top 5 Most Delusional Rentals:

    #5 – $8000 – 1BR – 1111 Alberni St (Shangri-La)

    “Phenomenal views of English Bay, UBC, Vancouver Island and the North Shore Mountains from The Shangri-La in Coal Harbour. Enjoy an excellent floor plan which features a large living room, open kitchen and dining area. Engineered hardwood floors, imported porcelain tiles, granite countertops and soft closing cabinets along with Miele and Sub Zero appliances. This suite has a very large master bedroom, walk-in closet and an amazing 6-piece bathroom built to pamper. Add to that 5-Star Hotel amenities, first-class concierge services and the central location With 2 side by side prkg stalls #142 & #144 storage locker #50. This truly is amazing value.”

    For eight thousand god-damned Earth dollars a month, I’d better see real, and not engineered, hardwood floors! Considering how hard it is to find an apartment downtown of this size (1400sqft) and the parking spaces, I’m putting this one at #5 instead of lower down the list. Trust me, there’s worse out there.

    #4 – $3495 / 1br – 1255 Seymour Street (Elan)

    “This Yaletown Vancouver furnished luxury apartment rental at the Elan is a gorgeous 1 bedroom corner suite with amazing views of the snow-topped mountains and the waters of the majestic English Bay. You can enjoy the views through the large floor-to-ceiling windows that also bring ample natural light to the space or from your private balcony that has been furnished with extra comfortable patio set. Fully furnished and completely equipped, this apartment features an open-concept design with the modern kitchen looking out on the living and dining area. The living room features high-quality modern furniture and a flat-screen TV for your enjoyment and the gourmet kitchen boasts stainless steel appliances and durable granite countertops. The one bedroom is furnished with a luxurious and comfortable queen size bed and also provides you with a great view and a walk-in closet. The building amenities at Elan include a fitness centre, sauna, and steam room. This Yaletown Vancouver furnished luxury apartment rental at the Elan is located right on the edge of Yaletown and downtown Vancouver and provides close proximity to trendy restaurants, coffee shops, trendy bars, boutique shopping, public transportation, and is only a short walk to the Vancouver Seawall. Your stay includes basic cable, utilities, internet, local phone service, in-suite laundry and bi-weekly maid service for your convenience. Secure underground parking is available for 2 vehicles. No pets please.”

    The only ‘elan’ you are showing by renting a 660 square foot Yaletown skycoffin for $3500 a month is a certain flair for burning your own money.

    The throw-away “no pets please” line is revealing- if they were targeting the non-existent high powered executive set visiting Vancouver for business, why would pets even be a problem? Does Huang Nubo tend to bring his incontinent Pekinese with him on business trips?

    #3 – $3500 – 1BR – 821 Cambie St

    http://www.padlister.com/listings/2203779.-1-bedroom-1-bathroom-Apartment-at-821-Cambie-St-Vancouver-BC-V6B-2P4-in-

    No description, no photos, no reason to pay 100% more than the going rent for a 1BR unit in Yaletown!

    #2 – $4000 / 2br – Commercial Drive and Williams Street

    “Walk to Everything. On a quiet street half a block off the Best part of Commercial Drive. Restaurants, Cafes, Deli’s, Green Grocers, Coffee Shops, ALL of your shopping right on your doorstep. 2 bedroom, 2 and a half bathroom that feels like a LOFT but gives you lots of privacy and Space. Hardwood floors, lofty ceilings, stainless steel appliances, gas range, 2 full size soaker bathtubs, rain shower, washer & dryer, radiant heat, gas fireplace and parking for one car in a secure, remote controlled garage off the lane. King bed in the master which has a full walk-in closet and Queen bed in the 2nd bedroom.”

    I have to admit, it’s fun to try and imagine what kind of business traveller in need of a hyper-luxury, furnished, short-term rental would countenance the least accessible stretch of north Commercial Drive, and (according to Padmapper), pay 185% more than the going rate for 1600 square feet for the privilege to do so.

    Maybe the King of the Squeegie Kids?

    #1 – $4295 / 1br – 788 Richards St (L’Hermitage)

    “This prestigious Yaletown Vancouver furnished apartment rental at L’Hermitage is a bright and luxurious 1 bedroom, 1 bathroom suite that features high end furnishings and spectacular views of downtown Vancouver. The kitchen boasts a minimalistic design and is fully equipped with stainless steel appliances, granite counter tops with bar seating, and a separate dining table. You can also enjoy your meals out on the private balcony while taking in the panoramic views of Vancouver. The living room is equipped with a 40″ wall-mounted, flat screen television, iPod dock, and a computer desk near the window where you can take care of all your business needs. L’Hermitage is an exclusive hotel and residence with fantastic building amenities, including 24-hour concierge service, a fitness centre, library, meeting rooms, steam room, and access to L’Orangerie–an exclusive lounge that serves complimentary coffee, tea, pastries, and weekend cocktails. This Yaletown Vancouver furnished apartment rental is just steps from the architectural marvel of the Vancouver Public Library, BC Place Stadium, Rogers Arena, world-class shopping on Robson Street, and a plethora of great restaurants and lounges. Adjacent to downtown Vancouver, Yaletown offers easy access to the business centre, combined with a distinctive neighborhood feel. Your stay includes utilities, basic cable, wireless internet, local phone, bi-weekly maid service, and convenient in-suite laundry. Underground parking is provided for one vehicle and visitor parking is also available. Small pets may be considered. Subject to seasonal rates. $150 move out cleaning fee applies.”

    L’Hermitage, more like L’OL! Now you know how I was able to keep the $8000/mo unit at the Shangri-La out of the #1 spot… at 623 square feet, this unit is both less rare, and more expensive per square foot! There are literally detatched heritage homes in the West End- entire houses!- you can rent for under $3,000. Granted, they don’t come with red leather barstools that look like Guantanamo Bay torture implements, but presumably that falls under the heading of “minimalistic design”.

    That’s all for this week, kids!

  6. Yellow Helicopter January 3, 2013 at 10:42 am

    Thanks Observer. So looking forward to watching your blog unfold over 2013 – think it’s going to be rather jaw-dropping. Much appreciate all your hard work.
    Happy New Year!

  7. Anon January 3, 2013 at 12:29 pm

    Any chance you can do a price drop list for foreclosure properties? There are a few websites that show listings but seem to be out of date. eg. 8785 Oak is shown as a foreclosure but at a price higher than you show. Thanks for your work.

    • Nelson January 3, 2013 at 12:38 pm

      The number of residential properties sold in Greater Vancouver fell 22.7 per cent last year while house prices posted a relatively small drop.
      A total of 25,032 single-family detached homes, condos and townhouses changed hands in 2012, down from 32,387 in 2011, the Real Estate Board of Greater Vancouver said Thursday, adding that the slowdown in sales volume last year was off 25.7 per cent from the 10-year average.
      The December index price, which strips out the most expensive properties, was $590,800 for sales on the multiple listing service (MLS), or a decline of 2.3 per cent from the same month in 2011.
      Index prices for single-family homes on Vancouver’s closely watched west side in December came in at $2-million, down 9.1 per cent over the previous six months but a smaller loss of 5.5 per cent year-over-year. December prices for single-family properties in Richmond slid 6.5 per cent year-over-year but other local neighbourhood markets strengthened slightly, notably Coquitlam, Burnaby South, Maple Ridge, Port Coquitlam, Port Moody and Vancouver’s east side.
      “For much of 2012 we saw a collective hesitation on the part of buyers and sellers in the Greater Vancouver housing market. This behaviour was reflected in lower than average home sale activity and modest fluctuations in home prices,” board president Eugen Klein said in a statement.
      Sales volume on the MLS service reached 1,142 in December, a drop of 31.1 per cent from same month in 2011 and down 38.4 per cent from the 10-year average for December sales of 1,855.
      “We saw home prices come down a bit during the latter half of the year. During the same period, we saw fewer home sales and listings,” Mr. Klein said.

  8. Vanny January 3, 2013 at 12:44 pm

    Can anyone tell me what V956419 sold for? They were asking 1.258 million.

  9. RFM January 3, 2013 at 3:46 pm

    The Vancouver ‘Realtor Hunger Index’ for December 2012 was 83%.

    This is the percent of realtors who went ‘hungry’ (‘earned’ no commission income) for the month using a simplistic formula: start with the total reported sales from the REBGV Monthly Statistical Report; assume 5% of sales were ‘double ended’ (one realtor kept the entire commission by ‘representing’ both buyer and seller), add to the number of ‘double ended’ commissions the number of split commissions (reduced by an assumed 15% ‘earned’ by realtors who handled multiple sales), divide the resulting number of commissions by the total number of realtors and subtract that fraction from 1 to yield the percent of realtors not ‘earning’ commissions.

    For comparison, historical figures using the same methodology are below (the REBGV website (http://www.rebgv.org/about-rebgv)) does not reveal the exact number of realtors at any particular time; based on my research, I used 11,000 for 2011 and 2012; 10,000 for 2010, 9,400 for 2009, 9,500 for 2008, 9,000 for 2007, 8,200 for 2006 and 7,800 for 2005):

    Month…..2005…..2006…..2007…..2008…..2009…..2010…..2011…..2012…..2013
    Jan……….64%……61%……67%…..68%……87%……68%…..72%……76%……
    Feb……….35%……40%…..47%……53%……74%…..59%……53%……61%
    Mar………16%……18%……36%…..47%……60%……48 %…..38%…..56%
    Apr………14%…….32%…..37%……44%……48%…..42%……51%……58%
    May………5%……..13%…..20%……47%……38%…..47%……49%……57%
    Jun………..8%…….20%……21%…..57%……25%……51%……51%…..64%
    Jul…………22%…..45%……28%…..62%……27%……62%…..61%……68%
    Aug……….22%…..39%……37%…..73%……39%……63%…..64%……75%
    Sep………..29%…..49%……49%…..72%……37%……63%…..66%……77%
    Oct………..34%…..45%……44%…..76%……34%……61%…..65%……71%
    Nov……….37%…..52%……47%…..85%……45%……58%……64%…..74%
    Dec……….50%……66%…..65%……84%……55%……68%…..75%……83%

    • CJM January 4, 2013 at 4:42 pm

      2013 is the year that the RE agents will earn their keep – not with the buyers but with the sellers – explaining to them that their property IS NOT worth what they think it is worth.

      As a buyer, number one priory is that I would not pay one cent over assessed value, and all bargaining will be on how much of a reduction below assessed values.

      One thought – maybe a % bonus to the buying agent based on the % difference (lower selling price) of selling price to actual purchase price. Since your goal is to achieve lowest buying price – if the buying agent actually facilitates this (and is not an order taker), they should be rewarded.
      Comments?

  10. enlightened January 3, 2013 at 5:29 pm

    flip gone bad:
    3731 Raymond Ave, Richmond BC
    Asking $1,198,000 Jan/2011 Sold $1,360,000 Jan/2011 9 days on market
    Asking $1,388,000 Oct/2012 Sold $1,268,000 Dec/2012 67 days on market
    $23,360 Property purchase tax, $40,544 commissions, net loss not including carrying costs = quite a bit.

  11. bullShiller January 3, 2013 at 7:17 pm

    I was watching this property: 5733 VERMILYEA Court, Richmond, British Columbia

    Did the listing expire or was it sold? I think this was listed in 2011 for close to 2 million. I would be interested in the history of this property.

    • an observer January 3, 2013 at 7:23 pm

      Was listed at $1.89 million since August 2011
      dropped to $1.76 million in March 2012
      dropped to $1.69 million in April 2012
      dropped to $1.59 million in June 2012
      removed January 1, 2013

      Given the timing of the delisting it seems more like an expired listing than a sell

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