Vancouver's epic housing meltdown has made news around the world, and with sales down by 31.6 per cent over the past year, people listing their homes are turning motivated. After years of what can only be described as a ludicrously strong seller's market, buyers are in the driver's seat today.
And to chronicle this turnaround, a number of Twitter accounts have popped up, gleefully displaying homes sold for way below asking, or listed for well below their last sold or assessed price. Chief among them are Mortimer_1 and Vancouver Real Estate Flip Flops, where new examples of house resale flops appear constantly, to the chagrin of realtors.
Just sold for a $679,047 loss (+ expenses)— Mortimer (@mortimer_1) April 11, 2019
1715 22ND STREET, West Vancouver
Bought 2016 $4,179,047
Just sold for $3,500,000
2018 Assessed: $4,572,000
2017 Assessed: $4,876,000#vanrepic.twitter.com/1UdShjcAbk
TEXTBOOK GREATER FOOL CUTS ASKING PRICE $1M IN ONE SHOT ($2.6M TOTAL TO DATE), HAS $2M MORE TO GO, AND WILL LOSE +$1.75M— Vancouver Real Estate Flip Flops (@VanREflipflops) April 11, 2019
1575 29th Ave W, Shaughnessy, West Side #Vanre
Before I start... an initial ask of $7.6M on this property and the realtor can't put up pictures that don't pic.twitter.com/KcxvQe4FOM
2/ look like they were taken with a digital camera from 1997? 🤣🤣🤣— Vancouver Real Estate Flip Flops (@VanREflipflops) April 11, 2019
Purchased Nov 2011 for $3.56M
Purchased Sep 2013 for $4.06M
Purchased by current owner July 2015 for $5.46M
Text book greater fool purchasing history.
Peak mkt value
To be sure, these sorts of massive discounts are limited mostly to the top end of the market, the million-plus homes -- which today includes just about any detached home in Greater Vancouver, although that is changing as house prices come down.
Watch: Average home prices across Canada. Story continues below.
In the rest of the market, prices have been somewhat more stable. According to data released Monday by the Canadian Real Estate Association, the benchmark price for a property in Greater Vancouver is down 7.65 per cent over the past year, to $1.011 million.
Those of us who aren't in Vancouver may have noticed that a million dollars is still pretty pricey for a bungalow. So still not exactly a cheap market, as these Twitter feeds prove.
Today's happy seller...— Mortimer (@mortimer_1) April 12, 2019
795 ANDOVER CRESCENT, West Vancouver
Stats will say this sold in "3" days...
Actually been trying to sell since May 2018... was asking $11,880,000
Just sold for $7,428,571#vanrepic.twitter.com/TivzJz6mBM
LISTED 14% BELOW ASSESSED AND 32% BELOW PEAK VALUE ON THE WEST SIDE— Vancouver Real Estate Flip Flops (@VanREflipflops) April 10, 2019
1949 Quilchena Cres, Quilchena Area (west of Shaughnessy), West Side #Vanre
Long time owner, first time listing
2019 Assessment $3.394M
Estimated peak mkt value $4.3M
Just listed today for $2.938M pic.twitter.com/X858mBrrhL
JUST SOLD: +$2M LOSS IN 11 MONTHS— Vancouver Real Estate Flip Flops (@VanREflipflops) April 10, 2019
4448 Chaldecott St, Dunbar Area, West Side #Vanre
Purchased May 2018 for $6.06M, $6.281M inc PTT
Listed Dec 2018 for $5.99M
2019 Assessment $5.06M
Sold today for $4.12M, $3.996M after commission
Sold for 19% below assessed https://t.co/1ezszfX2XP
2/— Vancouver Real Estate Flip Flops (@VanREflipflops) April 10, 2019
TOTAL LOSS IN 11 MONTHS: $2,284,600
That's $208,000 per month
$6,900 per day!
The British Columbia Real Estate Association reported numbers showing the slowdown in Vancouver's market is now spreading to other parts of the province.
Sales are down steeply, when compared to a year ago, at real estate boards in Chilliwack, the Fraser Valley and the Kooteny and Okanagan regions, as well as on Vancouver Island, including Victoria. Province-wide, the benchmark house price is down 5.4 per cent over the past year, to $687,720.
'Near recession-level' housing demand
"B.C. home sales continue to be adversely impacted by federal mortgage policy," BCREA chief economist Cameron Muir said in a statement. "The erosion of affordability caused by the B-20 stress test has created near recession-level housing demand despite the province boasting the lowest unemployment rates in a decade."
"The sharp erosion of affordability caused by the B-20 stress test is now creating pent-up demand, as many would-be home buyers are forced to wait on the sidelines. Unfortunately, new home construction is slowing as well, which will likely lead to another housing supply crunch down the road."
Earlier on HuffPost Canada: