Saturday, November 04, 2006
old becomes new
This one is interesting.
Last summer there was a fairly decent house at 5290 Bursill. It was listed at $425K. We felt that it was over-priced, and that the bubble would burst in the fall, so we enquired no further.
This year there is a brand new house at that address (v609708) listed at $698k. It is 1799 sq.ft., (with 5 bedrooms and 3 bathrooms). I have no idea if they paid the list price, or over/under list, so to be fair, I'll guess list. I read not too long ago that 2006 building prices in East Vancouver were about $186/sq.ft., so this house would have cost about $335k to build. Add that to the list price ($425k - 2005), add in PTT and commissions, and these people are losing their shirt on this one.
I'll admit that it is a little bit nebulous, they might have paid $375k for the house last year, and building costs may have been a bit lower. But it does not look to me like anyone is getting rich on this one.