Monday, February 12, 2007

price compression

freako has spoken of price compression coming before the crumble, and I offer below, evidence of that in spades.

I looked at houses in Van. East, and Van. West in roughly the same price range. It's pretty ridiculous as far as I'm concerned.

$825,000.00
1021 ODLUM DR., East Vancouver

A newly renovated home in an easy going neighbourhood with quick
access downtown .The exterior features new vinyl siding and double glazed
windows. Main floor ha s living room with electric fireplace and bay window. The
kitchen is updatedwith new Maple cabinets, tile floor, countertops and new SS
appl. Main offers two full baths completely updated with soaker tubs. Wood
laminate floors thru-out, new drywall,new baseboards and crown mouldings.some
updated elec and plumb. Four bdrms p lus recrm or playroom up with 2pce bath.
Bsmt is all set for the in-laws, sep entry 4bdrms plus 1.5 baths (soaker tub),
laminate wood flooring and new SS appliances. Shared laundry. Fenced yard,
parking off lane. Close to schools. City skyline views

MLS®: V623596
Finished Floor Area: 2570.0 sqft.
Property Type: House
Lot Frontage: 33.0 ft.
Lot Depth: 95 ft.
Basement: Full
Bedrooms: 8 Age: 76
Bathrooms:
(Full:3, Half:2)


They call this a two story with basement. I call bullshite. Newly renovated is good (if you don't mind paying extra for someone else's tastes), but there are not granite countertops. The lot is pretty small too. And what the heck would the "in-laws" do with four bedrooms? Have a couple more kids?

Good luck with that.



$809,000.00
3306 PARKER ST., East Vancouver

Corner brand new 2.5 levels 2212 sqft custom built home with
unobstructed N moun tain view. 6 bdrm & rec room in basement. Downstairs
could be separate suites. H /W stairs, granite F/P, entrance hallway &
counter tops in kitchen & bathrooms. Stainless steel kitchen appliances.
2-5-10 new home warranty.

MLS®: V608622 Finished Floor Area: 2212.0
sqft.
Property Type: House
Lot Frontage: 33.0 ft.
Lot Depth: 112 ft.
Basement: Crawl
Bedrooms: 6 Age: 00
Bathrooms: (Full:5,
Half:0)

Just a short distance away, this custom-built home is offered for 16K less than the oddball on Odlum (above). It has one less bedroom, but has 5 full bathrooms. It also has a new home warranty. Unfortunately, it was custom-built to someone else's tastes. It does not have a basement either, but they call it 2 1/2 story because it has a crawlspace. I call that false advertising.

Bon Chance avec ce maison aussi.


$848,000.00
1012 W 57TH AV., Vancouver West

Lot value only! 57th and Oak. 10,106 square feet lot in a
park-like setting. House has no power! Sold as is where is.

MLS®:
V622677 Finished Floor Area: 2640.0 sqft.
Property Type: House
Lot
Frontage: 65.0 ft.
Lot Depth: 153 EFF
Basement: Part
Bedrooms: 3
Age: 56
Look at this! A ten thousand square foot lot for just 20K more than that shack on Odlum... In Van. West, no less. There is no power, so it was probably a grow-op, but 50K ought to take care of the re-fit to make it habitable. This place looks like a "good deal".



$838,000.00
7899 MONTCALM ST., Marpole Spent over $100,000 - extensively renovated brand new roof, vinyl windows, new k itchens and bathrooms all with granite counters. Upgraded electrical and plumbin g. Master bedroom with ensuite, 3 bedrooms Up, new 4-bedroom basement suite. Close to school and shopping.

MLS®: V629861 Finished Floor Area: 2250.0 sqft.
Property Type: House
Lot Frontage: 33.0 ft.
Lot Depth: 122 ft.
Basement: Fully Finished
Bedrooms: 7 Age: 49


Big deal. You spent 100K putting in granite counter tops, and you still have less than half the lot as that above. It's got revenue potential though, and it is in Van. West for "only" 13K more than the dump on Odlum. You can explain that by the slighty larger lot size though. And in case you didn't know, Everyone in the world wants to live in Vancouver, and everybody in Vancouver wants to live near The Drive. People will pay a lot for that "Bohemian" lifestyle. Who wants to live on the stodgy west side?


$834,000.00
7622 FRENCH ST,Marpole
AMAZING VALUE on Vancouver Westside! Located in Churchill High
School district, this cute bungalow features recent renovation throughout &
a 2 bdrm mortgage hel per. Huge potential for 1st-time-buyers, investors &
builders-big 6,900 sf lot. Definitely not to be missed! *Ask re: plans for 4,000
sf new home!* First showing, Agents Open Thurs Feb 15, 10-12 pm.

MLS®:
V630005 Finished Floor Area: 1906.0 sqft.
Property Type: House
Lot
Frontage: 82.0 ft.
Lot Depth: 117 ft.
Basement: Full
Bedrooms: 4
Age: 65
Bathrooms: (Full:2, Half:0)


I don't know, this looks to be a better deal than the one above. It's a more attractive house on a lot that is twice the size.

So what the heck is going on here? The city is unhinged from "fundamentals" when compared to other places, and there is a further unhinging between the West and East sides.

By the way, you can still buy hovels west of Main for less than 600K.

10 comments:

djmk said...

in regards to that first house, what exactly does "easy going neighbourhood" mean? in that neighbourhood, i think it means that the neighbours do not care if you shoot up on their lawn and bring crack whores to play with their kids. maybe that hemp/clothing warehouse nearby adds a little charm

$825,000. give me a break. i would not even pay half that

solipsist said...

djmk - yeah, that "easy-going neighbourhood"...I got a laugh from your supposition.

I told my wife last night that I might consider 200K for that place. You are very generous.

Real estute said...

I love the critique and redicule going on here with these properties. I think it is those that buy these places at or anywhere near asking price that are the real stars of the show. I just hope my little for-sale-by-owner place doesn't end up on your hit list....c2clofts.com

mohican said...

'harbinger'

Yes, this price compression phenomenon is a big harbinger of the crash to come in my opinion.

Solipsist - great anecdotals. Have you checked out the geeky analysis over at my place? http://langley-financial-planning.blogspot.com

solipsist said...

real estute - that is a great presentation that you have. Well done.

You will not end up on my hit-list (though I almost wonder if you are inviting such - grin). NO GRANITE! That earns bonus points.

I do have to say that I like the layout and finishing in your pad. I especially like that sliding wall. No doubt that the security is great with the police living-in.

mohican - I have checked out your blog quite a bit, but lately, the alligators...my arse... I don't get out surfing much lately.

I just checked, and saw that you beat me to price compression by about 7 hours... Oh well, you've got the analysis, and I've got the pretty pictures. Maybe a merger is in order.

bakakuse said...

Thanks for the pics, Solipsist.

Price compression maybe here, so is me being priced RIGHT OUT of the market. A while back I didn't buy by choice, now I can no longer afford to buy.

800K? Is that where we're at? So if those realtors and economists are right and we get 10% appreciation, that will be 80K per property. Hmm, so I need 160K pretax to just keep up with housing, and to save every penny of it.

This market blows my mind.

the pope said...

Just in case you were wondering if there was anything rational about prices here..

..Apparently not.

If we extrapolate the price trend of the last half year it means a small 1 bedroom condo will be worth twice as much as a 2 story single family home by 2011.

Ulsterman said...

STOOOOOOOOOOP! I've spent the best part of 6 months avidly following the real estate blogs. Every now and then i just feel like screaming when i see these prices. Who is buying these places???????

To buy an $850,000 house with $85,000 down(who actually has this kind of cash??) the payments are around $5,000 / month and the income required is $183,000.

My other beef is with the "best place in the world to live" bull. 90% of the people who live in the Greater Van area could live anywhere and get the same lifestyle for a 1/3 of the cost. Why? Cos they NEVER ski, sail, walk at Jerrico, ride the North Shore, or roller blade around Stanley Park. Why do they live here with the impossible real estate and #1 traffic snarl-ups? Most go to work and watch tv all evening. They spend their weekends exploring IKEA, Canadian Tire and Revy. Couldn't do that anywhere else in Canada...

I'm off to take my meds...

Steve said...

1021 Odlum is now for sale for $589k. It had it's power disconnected by the city in May 2007 for permit violations. Sand the city issued an official warning to prospective purchasers in May 2008.

Buyer beware!

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