Thursday, May 3, 2007

Open Door Policy

I don't have much for you today, so I'll link to some reader tips and this dandy:

SFH prices are down 5% in the Fraser Valley.

Van Sun Prices Up story

TC paraphrases that April VREB report.

Arizona deals with the problem of re-listing properties.
I should state that we see this fairly frequently in the segment of the market we receive updates for. I wouldn't say re-listing as a wide-spread problem, nor really deceptive because a buyer's agent, and us too with the system that we get to view MLS listings, displays the re-listed properties. They're not obvious at first glance, but if you check your lists once or twice, you'll be able to pick them out. If you're really concerned, just ask your agent. If you don't use a buyer's agent (and I'm not sure why anyone wouldn't, they don't cost anything to you) just ask the listing agent. They are obligated to disclose that information. They're also obligated to disclose the previous selling price of the home too, not just the re-list but what the current owner's paid and when.
Shiller on Bubble.

TC writes about the flipper contest. I'm surprised that it's not really a pump job. Story presents more of a 'cautionary' tone.

Victoria City to make secondary suites legal?

Canadians maxed out their RRSPs in April. Can anyone say HELOC-financed purchases?

Feel free to post your own in comments.

9 comments:

StargazerXL said...

One topic I'd like to see explored is: how are Victoria-based companies reacting to locally high house prices? Are they able to provide incentives to new employees to get them to move here? But how can the BC Government, a major Victoria employer, manage to do this?

Anonymous said...

None that I've heard of are doing anything. How can you help when home prices are over $500k? People just won't want to come here to work when they can't afford anything and could probably make more elsewhere.

Vicguy said...

HHV,

Do you track West Saanich under $450,000 range ? I just did a search and notice like only 3 pages when their is usually much more like 2-3 times. I am thinking it may be month end expiration like some are noticing in Vancouver.

Plus I see the same low end stuff for sale in Victoria 2 with alot of competition in the upper 300's to 450 range. I have to laugh as most are like 1000 sq ft or less, 2 bedroom , 1 bath.

Next month I am sure will give us more insight as there was alot that went on the market the last 2 weeks that most likely did not sell and alot still seems to be coming on the market the last couple days I have been looking.

Anonymous said...

Thanks HHV for posting the link to the Shiller interview.

When I get down I just go and read it and it picks me right back up.

S2

hhv said...

My tracking showed listings actually decreased in the low-end segment in April. Could be because of sales or expiries; but mostly sales and then lack of new-listings.

I think this can be answered simply: why sell when you can't afford to buy up? I think more people are looking at the market with less-rose-coloured glasses (maybe wishful thinking) but if I cash in my $200K equity I built up over the past 15 years I still have to take on an un-affordable mortgage to step up.

I think we'll be seeing less total listings in this price range because people who have bought in, or live there now, can't afford to upgrade, or just simply don't want to assume that kind of debt.

just my $0.02, take it for what it's worth.

Greg said...

hhv -

the other reason for the lack of listings under $450,000 is greed - a lot of houses that were listed at those prices are now being listed with asking prices $100-$150 thousand higher than last year. Which is why the listings continue to increase - a lot of houses in the resale market are sitting, they're nothing special and there's no urgency to buy at those prices, the good stuff will sell and nothing else will.

Not to mention, if you watch what is happening, condos are selling at a higher rate than last year, while there are already more townhouses for sale than at the peak last year of townhouse availability, which was in August.

Can you say boomers downsizing. Out of towners buying new condos are not going to help Joe in sooke sell his mobile home. If anything, the expectation of unrealistic prices in the resale market is going to make it harder for a lot of greedy homeowners - until it is too late.

As of today, there were 234 townhouses for sale in VREB. As a more and more product comes on stream in places like The Railyards, it will be interesting to see how the resale market handles it.

Greg said...

StargazerXL,

see my comments at Cheaprealty regarding crazy real estate schemes, as far as what is happening or might happen to encourage people to move here despite the high price of housing.

Vicguy said...

"I think we'll be seeing less total listings in this price range because people who have bought in, or live there now, can't afford to upgrade, or just simply don't want to assume that kind of debt.

just my $0.02, take it for what it's worth. "

This is what I recall happening in 81,there was very little for sale in the low end that was quality and not a dump. The market seemed to take on this dead zone where prices gradually slipped in the beginning and then dumped heavy by mid/late summer as it was apparent the party was over and the buyers backed off strictly on unafordability. As much as I am shocked at the media pumping this pig til the bitter end without questioning once about the realities , I remain steadfast we are closer to a correction then ever.

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