Here's a similar chart expressing housing costs inflation adjusted into 2007 dollars.
If real estate doubles every ten years as our Realtor keeps telling us, where should we be right now? Well, RE didn't double between 1978 and 1988, so I guess you can throw that theory out the window. It didn't double between 1988 and 1998 either, it was a 50% gain during that period--roughly equal to the previous boom period between 1978 and 1982 right before a 43% decline. And then between 1998 and 2007 we've witnessed an unprecedented 85% plus run-up.CMHC shows that rental rates have increased at a rate of just under 1%/year between 1992 and 2007. I'm looking for a 35%-45% correction in Victoria. The signs are all there if you open your eyes wide enough to see them.
Of course, a good number of househunters seem to still be wandering around with their eyes wide shut. But that pool is getting smaller. Thankfully.
221 comments:
«Oldest ‹Older 201 – 221 of 221I found out this week (see my blog for before/after links) that the oft-celebrated Villa Madrona just reduced their asking price.
By 4.25 million dollars.
Four...and a quarter... million.
Lesser sellers take note!
"Just bought a place in Fairfield for 580,000 on a private sale. It's really really beautiful and cheaper than rent. I find Fairfield to be quite warm and friendly. It's kind of like the Uplands but far nicer for me. The owner is throwing in a lawnmower. I'm so excited because I haven't mowed a lawn since I was a kid. I've been renting for years and now I can finally mow the lawn."
You likely got a good deal at $580 (house/ property/ area depending of course.) Enjoy cutting your lawn and enjoy your garden. Don't let the bears poooop on your party. Maybe if they hadn't been so busy sh*tting on everything they see, they would have bought a couple years ago. Notice how they always have verbal diarea? Must be nerves. I'm not surprised that they can spell ridiculous, they spend a lot of time explaining it.
By the way, my renter enjoys cutting the lawn and tending the garden - treats it like his own really.
Keeping in mind that I just bought 3 years ago, watch what happens here when I say that I spend less on my mortgage than they do on their rent:
What happens here is that you have just shown why prices are going back down to 2005 levels.
Anon 9:25 PM,
You sound like one of those who lost their marbles on account of realizing that you lost it all.
Did they give you a day pass today?
Man, so many idiots like this guy/girl/it are surfacing here lately. There's no sense mentioning all the facts anymore (Ozzie's confirmation that RE prices will fall for years to come, competition with Phoenix where SFHs sell for $150K,etc).
Let me guess, tomorrow this guy/girl/it will post something about their DEPENDS. What a bunch of sickos these selfish provincial speculators are. They've never travelled, they feel they are accomplished and they are so provincial in their thinking and all seem to have digestive problems (when they realize they are in a sinking ship).
Remember, the government won't help you when you walk away from your "investment" property and you'll be on the hook for any difference between what the bank sells your property for and what you owe them. I feel sorry for you. I mean the signs are so obvious where the market is heading and you come here prancing and bragging about your status. Well, you are the BIG TIME LOSER.
Let me guess too, you must be one of those who buys his/her/its gas on the side where it rains 8 months of 12 and for $6.50 a liter, when you can buy the same gas for $1.50 on the sunny side. That is what is called a FIRST CLASS IDIOT. Duh!
However, Greenberg doesn't believe the low auction prices will affect resale values in the building over the short term
He's right. The auction prices simply reflect what buyers are willing to pay today, and the other units would sell for that price whether they had the auction or not.
You see, simply bitter.
Dave,
To quote a poster on the other blog: "you must be one of those who buys his/her/its gas on the side where it rains 8 months of 12 and for $6.50 a liter, when you can buy the same gas for $1.50 on the sunny side. That is what is called a FIRST CLASS IDIOT. Duh!"
Dave,you are that IDIOT. Everybody else is buying houses with in-ground pools for $150,000 where it is sunny and warm in Phoenix and Las Vegas. Ozzie confirmed that too. Enjoy your life of self-pity and misery.
Adeptus,
I concur with Boomer. I know that agents will wish to sell their listings or companies listings first and are far less likely to encourage their clients on discount boroker properties, relocations and forced sales as they typically get a smaller commission.
An agent brings a buyer and seller together, they don't make market value.
If price is how you measure the worth of the realtor, then the difference between a good realtor and a bad realtor may only be a few percent.
With the high commission cost today, more and more people are selling their properties themselves. If you can spare the time, this might be a way to save the commission.
Don't want to get an agent involved - then contact an appraiser. They would look at your home with a fresh insight and would be able to see things that would be of concern to prospective purchasers.
just jack
Anyway, have fun
Direct copy from Fred Carver Realty "Blog" as of Jun 10
<< http://www.victoriahomesandproperties.com/blog_post.asp?post=14532
>>
"Current Inventory for Single Family Homes = 1944 Equals 2.8 month supply
Current Inventory for Condo's and Townhouses = 1630 Equals a 2.4 month supply"
According to VREBS numbers (which is even referenced by Fred as his source) the SFH MOI is understated, BUT the condos /townhouses MOI number is completely fictional with 237 May sales reported (and Im assuming even lower in Jun).
Fred appears to badly need a new calculator.
Some should call VREB and lodge a complaint against Freddie for reporting false information.
Thanks for your input guys,
Adeptus
Villa Madrona needs to keep going. You can get the exact same house in Las Vegas without ever worrying about a Tsunami washing your crap out to sea for $6 million tops.
Oh. WITH AIR CONDITIONING.
Does anyone know how the Calgary market is doing right now?
"Luxury condo put on market in Calgary"
http://www.canada.com/vancouversun/news/westcoastnews/story.html?id=b86183ee-7e25-40ad-973e-9ab29e1bbe3f
Does anyone know how the Calgary market is doing right now?
"Luxury condo put on market in Calgary"
http://www.canada.com/vancouversun/news/westcoastnews/story.html?id=b86183ee-7e25-40ad-973e-9ab29e1bbe3f
Maybe Madonna would be interested in Villa Madronna. It resonates well. NOT. The place will have to go to auction in order to sell. I think it was for sale already in 2004 at the $15 m price. Likely the highest it will sell for is probably $2 million.
Well, its near the end of the month, lets crunch some numbers.
Detached homes in the Capitial area.
The number of homes has increased 26 percent from this time last year. While sales have decreased 28 percent over the same period. Yet, prices have increased 12 percent. Currently, there are 3.45months of detached home inventory in the Capital Area and the New sales to listings ratio indicates a balanced market of 0.42 but leaning to "bear" territory.
The median price for the last 0 to 90 day period increased 6 percent to $593,714 in relation to the prior 91 to 180 day period.
So,the current marketplace for detached homes in the Capital Area is balanced with stable to increasing prices. However, price appreciation is slowing, listings continue to increase and volume of sales is falling.
How about Condos in the Capital Area. Sales have decreased 36 percent. Listings have increased 31 percent. And year over year prices have increased 7.3 percent. There is currently 5.9 months of supply and the New sales to listings ratio is in bear territory at 0.3
The median price for the last 90 days is $295,000. The median price in th 91 to 180 day period was $300,000.
Definitely trouble in the condominium market as the new sales to lisings ratio has dropped from bull territory (0.75) to bear (0.3) from this time last year.
In my opinion, the condominium marketplace is bearish with stable to decreasing prices. The majority of the stability and price increases are in the re-sale market. New projects are languishing in the market.
In summary, it appears that the marketplace is comming down from historical highs. Prospective purchasers are in a stronger bargaining position and sellers are more willing to negotiate.
just jack
Victoria is sure to see some massive sale frenzy due to the tall ship festival this weekend. The international exposure will result in a feeding frenzy. Anecdotally I was downtown and heard many tourists saying they were going to open houses over the weekend. One said he had an offer in on a condo already. Looks like this tall ship festival is a BEAR KILLER
Thanks for the great evidence anon, maybe I will buy one and immediately resell it to an out of towner for 12% more than I paid for it.
Oh, wait. Apparently you can only do this on auctioned condos in Parksville.... Oh well.
""sure to see some massive sale frenzy due to the tall ship festival""
that's subtle sarcasm, right?
hehe indeed I assume the tall ship post is comedy as well. Brilliant stuff!
testing troll
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