Monday, November 5, 2012

Monday market update: don't wait till spring to sell

This week's VREB Monday numbers thanks to Marko Juras. These numbers are for the Victoria Real Estate Board's reporting area, including Sooke, Shawnigan Lake and the Gulf Islands.


November 2012 month to date
Net Unconditional Sales: 40 
New Listings: 116 
Active Listings: 4397
Sales to new listings ratio: 34% 

November 2011
Net Unconditional Sales: 482
New Listings: 847
Active Listings: 4329
Sales to new listings ratio: 57%
Sales to active listings ratio: 11% or 9.0 MOI

Canada braces as housing slowdown takes hold (h/t koozdra)


That's about as bold a headline as we've seen in some time. 

These quotes are just gold, especially coming from a local agent:

"Personally I don't see any revitalization of the market in the near future" - investors have left the market

“Sellers will commonly say, ’I’m going to wait until the spring, when the market is better.’ And I warn them that it could be worse... And of course buyers are saying ’It looks like things are bad, I’m going to hold off until the market drops another 10 or 20%.”’

When was the last time you heard an agent use the pronoun another in relation to a significant market drop? 

I know, I know, there's more than a few folks out there telling themselves they don't have to sell so they don't have to accept a lower price. Fair enough.

But remember: it's the homes that sell that set the market value of the homes that don't. 

Victorian's got away with a temporary drop in 2008/09. Me thinks this time it's different. 

210 comments:

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Johnny-Dollar said...

Marko Said: but not for them losing money on the house. If you spend millions of dollars to build a custom house you'd better not count on getting it all back.


I'm guessing they're 13 million dollars less rich now.

SuperBob said...

RE: 1895 Lansdowne

Good luck to them. 1895 is on the Heritage list. http://www.saanich.ca/discover/artsheritagearc/heritage/pdf/shelbourne.pdf

MC said...
This comment has been removed by the author.
MC said...

dasmo... are you sure you can do it properly without endangering anyone else's life besides your own? You are not going to be the end person to deal with that asbestos product.

dasmo said...

It's not that big a deal. Most vermiculite doesn't actually have any in it anyway (we got rid of it regardless to avoid problems with reno's etc), if it's in linoleum or other such products it's sealed. As long as you aren't putting it into an Oscorp cloud-generating device everyone will be just fine. I would still rent the hazmat suite, air purifier / testing kit and the plastic easy up walls etc if I was doing any demo involving it though. Seeing it being done, I can tell you they make a lot of money doing it.

Fair priced remediation:
http://www.removall.ca

testing and certification: http://www.pacificenvironmentalbc.com/contact-us-locate-a-branch.php

Gear to DIY:
https://www.acklandsgrainger.com/AGIPortalWeb/agi/Safety/Protective-Clothing/Limited-Use-Clothing/_/N-1z141xh/Ne-1z141z2

https://www.acklandsgrainger.com/AGIPortalWeb/WebSource/ProductDisplay/globalProductDetailDisplay.do?item_code=MSA10084690

dumping:
http://www.crd.bc.ca/waste/hartland/asbestostransport.htm

etc... Nothing illegal or particularly dangerous and being faced with an 80k bill I think I would take a few weeks off and get setup to do it myself. That is if Removall wouldn't just to it for 15k...

Marko said...

Tuesday, November 13, 2012 8:15am

MTD November
2012 2011
Net Unconditional Sales: 140 482
New Listings: 323 847
Active Listings: 4,648 4,329

Please Note
Left Column: stats so far this month
Right Column: stats for the entire month from last year

MC said...

No bid deal? It's only BC's #1 cause of occupational diseases...

http://www.hiddenkiller.ca/

dasmo said...

sigh...And that's why you wear the suit. Doing a single demo with protection is not going to be risky at all. You are not handling an airborne virus. Like I said, get it tested so you know. You would probably find your vermiculite doesn't have asbestos (remove it anyway). Most other materials that MIGHT contain it, contain it, so it's the dust created during demolition that has potential hazards. So, wear protection....Or find out if Removall will do it for you at a reasonable cost. OR pay someone 80k to do it because you are uninformed and afraid.... The reason WCB is on it is because of repeated exposure, with no protection, increases the risk considerably. We removed out vermiculite even though it tested to have insignificant quantities of asbestos simply because of WCB and the fear associated with it. Good luck getting anyone to work up there otherwise, even if you can flash them a certificate.

MC said...

sigh...there is just more to it then wearing a suit.

axeman said...

20% Down is $40,000 so in 10 years at 7% it would double. In this market, you are hardly able to get this via Real Estate.

So 40,000 gone, now closing costs in and out... say 8000 both ways

no we are down 56,000 in 10 years

Try 5% down.

Try your calculation at 4, 5, or 6 not todays rates, if your mortgage is 25 years, ammoratize over the life of the investment, not just today.

At 5% it is.... $1,198.98

and $850 of that is going to the bank as interest payment.

Total monthly expense of owning this unit is now...

$ 1467.00

and only about $384 is going into your principal..

I will rent for 1100 thank you. Keep my $40.000 in the bank generating income, and invest the 400 a month I save by renting.

After 10 years I will have netted
approximately $40,000 on my downpayment, and $48,000 plus interest on investment.

Now here is the question, will this $217,000 Condo be worth $305,000 in 10 years? As that would be the break even point between renting over buying.








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