Off The Grill
Posted March 22nd, 2010 in Real Estate, Statistics | 
West/East Daily Review
The daily sales for the West Side – East Side attached and detached homes had some ups and downs.
New Listings
The daily performance was consistent throughout the week hovering in the 91 to 112 range.
Sales
Thursday, March 18 saw a drop of 66% from the previous Tuesday March 16. Solds recovered on the last day of the week bouncing back to 52 units.
Off the Grill – Monday, March 22nd
Somebody tell me what’s going on! Attempts to arrange a second viewings of three separate properties on the East side viewed by a client buyer at Sunday’s open houses were broad sided with ‘nice try Larry – we have multiple offers which are being presented at 5 p.m.”
50/50 Hint – watch for higher number of solds in the days ahead and, if the multiples are an indication, expect higher than ask prices.
Word on the street is that the mortgage deadlines are having their affect and pushing the east side market.
Thinking of Selling? Be quick!
“Word on the street is that the mortgage deadlines are having their affect and pushing the east side market.”
So then people buying these properties are not putting much down and overbidding on properties. Nice….no bubble here….just move along.
Sorry, Larry.
Can’t change the name. You’ll have to imagine a shizu or chihuahua with stomach problems… much cuter than a Great Dane.
Larry, when is the deadline and must you just be approved for a mortgage by the deadline or actually have an accepted offer on a property?
Thanks
Hope your successful with some of your offers/activities Larry.
We agree (sellers, be quick).
Based on what you are seeing, I imagine the sales numbers through April will look pretty solid.
All the best.
@MH
- according to conversations with the folks at Invis-Team Rob Reagan-Pollack, if you are
self employed you must have penned a deal by April 9th 2010.
- be sure to check with you lender
@vomitingdog
- oh my! even those breeds leave visions.
@ Not Much of a Name
- didn’t say they weren’t putting down much. My self employed’s have lots of loot – think $500K DPMT. Others not so fortunate and may be as you describe.
- What continually amazes me is just how much wealth exists but remains unassumed. Lesson – yah just don’t know so be nice!
@ Charles
- “what am I seeing” – a reasonable assumption
Lucky clients, getting “broadsided”. This is a game that one is better sitting out.
Just looked at a friend’s building. He bought w/o inspection in a bidding war. Opened up the wall and the boards are in various states of disintegration from water damage. I figure 200k to properly renovate. Can’t put up a new building of this type due to zoning. What a disaster.
holymackdaddy
bearish stats today!
@Beard of Bees
- What can I say to that without being too rude! Purchasing a condo or a house without a complete inspection by a licensed inspector under any condition is tantamount to insanity. Those who do are playing silly bugger with their financial life!
@charles
- wait for it!
160 price changes! Hot diggity!
BoB – that reminds me of a story in the paper from a few years back (they passed on an inspection due to a bidding war also):
http://www.canada.com/vancouversun/news/story.html?id=526d8c3b-c99f-4be5-8d6a-381dce7b2893&k=49820
“A Vancouver couple with as many as 80 bats living in the walls of their West End condo are going to have to live with them for now because the bats are protected under the B.C. Wildlife Act. They can’t be disturbed during their breeding period from May to August. Anyone caught capturing bats may face fines of up to $345 per animal.”
“- didn’t say they weren’t putting down much. My self employed’s have lots of loot – think $500K DPMT. Others not so fortunate and may be as you describe.
- What continually amazes me is just how much wealth exists but remains unassumed. Lesson – yah just don’t know so be nice! ”
I know you didn’t explicitly say “they” were putting down much, so why would the rule changes drive the market? Why would someone with lots of cash sitting on the sideline jump into the market because of rule changes to mortgages? Doesn’t make sense. If there is a rush driving the market, that would indicate that the people being affected (ie low downpayment) are getting in while the perceived getting is good.
I don’t understand why anyone with lots of cash and no issues obtaining a mortgage with the new rules, would even want to compete with those who are desparate to get in at any cost, even over cost (over bid).
I’ll just sit with my self employed cash and wait, thank you very much.
John,
Is your point that there are lots of price reductions out there? If so, how does this square with the view i’m hearing from the street (larry/will – and i don’t think their at all stretching things) of a hot market out there?
@Not Much
- in this singular case they want a home to live in. Up and down market isn’t phasing them. I’m assuming they believe that in the long run the variances don’t matter much relative to the ‘I own’ benefit – different strokes I guess!
@John
- I remember that! Thanks for reminding us.
But you still aren’t addressing the issue of why would the mortgage changes cause a rush for people to buy.
If people aren’t being affected there would be no rush. If people are being affected (those who are marginal, borrowing to the max, low dp) then yes I can see a rush.
@Not Much
- Why the Rush? There is nothing in my profile that tells you I am a social psychologist.
- So addressing ‘the issue’ has a simple answer which is – I DON’T know the exact reason! How could I?
I haven’t interviewed this group of people and I don’t have their personal financial statements in hand.
What I do know is that people are funny creatures who react to circumstance in different ways which leaves us with your guess is as good as mine.
Larry,
People are funny creatures. They like to buy what is hot and sell what is not.
The best performing equity fund in the US has 4 billion in it, and averaged 19% annualized from Jan 1/00 to Dec 31/09. Over ten years.
The average dollar-weighted investor return was annualized MINUS 11 percent. I am not making this up. What does it tell us? It tells us that people are funny creatures.
You should read about the Missisippi bubble (French bubble).
@Charles
- yup! We are strange for we stand in lines for movies, concerts, and pre-sales.
- Then we complain when the movie sucks, the concert flopped and the pre-sale profit didn’t materialize.
- Makes you wonder how a ‘humble peddler’ of fine homes manages the burden!
We’ll find out one day Larry.
Like I said, we’ll meet when the time is right.
For many many many people (for a variety of reasons, but not for us) buying/selling in this market is an A-OK exercise (ie. moving within the market, up/downsizing, having loads of dough or wanting a house and not worrying about the upds and downs for a long time, etc.), so your services have a market. But for my dollars, we wait.
I’ve read the book, I know how the movie ends.
@Charles
Not in the movie business but I understand they shoot various endings to the story line.
Some end up on the cutting room floor. All we get to see is the Final Cut.
How different would the story be if the director changes endings? Interesting dilemma to ponder when applied to real estate methinks.
So the sales that are now reaching these statistics – won’t they be the properties that were listed during the Olympics?
@Anon
not necessarily. A great number have come to market post Olympics.
Charles/Tammy – Price reductions might be the reason for the multiple offers, who knows really? Sellers might reduce their price to get people in the door and then multiple offers ensue.
TBH I think the good properties are selling and getting multiple offers but there’s still a lot of crap sitting out there that need price reductions to sell.
Exactly, John.
Coquitlam is full of overpriced crap. Price reductions will have to be the order of the day.
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