Asking home prices fall by double digits in Metro Vancouver as BC budget begins to bite

By ThinkPol Staff

Asking prices for homes in Metro Vancouver are falling ‒ in one case by as much as 73% ‒ suggesting that budget measures announced by the NDP government to promote affordable housing by tackling rampant crime, corruption and speculation in the real estate market is beginning to work even before they come into force.

For example, the asking price for a home on the 10000 block of Seaword Court in Richmond’s Ironwood neighbourhood has dropped from the original listing price of $5,880,000 on February 14 to $1,588,000 today, data sent to ThinkPol by an industry insider show.

“This is just the tip of the iceberg,” the industry insider who sent ThinkPol the data said. “Many sellers are delisting and relisting to hide price falls and reset days on the market counter.”

The property was previously listed for $5,880,000 on November 30, 2017, but the seller subsequently terminated the listing.

The asking price for a property on 11000 block of Blundell Road in Richmond’s McLennan neighbourhood, originally listed for $4,680,000, has dropped by almost half to $2,380,000, the data show.

The third largest drop we found was in Burnaby’s Brentwood Park neighbourhood, where a property on 4000 block of Alpha Drive has seen its asking price slashed by a third from $2,980,000 to $1,998,000.

BC Finance Minister Carole James unveiled a budget on Tuesday that contains a thirty point plan to address housing affordability titled “Homes for B.C.”[1]http://bcbudget.gov.bc.ca/2018/default.htm.

The measures include the imposition of a speculation tax and increasing the foreign buyer tax rate from 15% to 20%.

“I hope to see a moderation in the market. We have to make sure that people can live in the community they work in, in the communities their children go to school in,” James told reporters on Wednesday, a day after presenting budget. “I hope you will see more affordable housing.”

The real estate expressed their concern about the impact of the budget measures.

“The budget introduces new taxes, hints at future taxes, and hikes existing taxes on housing,” Real Estate Board of Greater Vancouver president Jill Oudil said. “Taxes don’t make homes more affordable.”

“The new tax measures introduced by the government to “stabilize the housing market” are unlikely to achieve the intended objective,” the BC Real Estate Association stated in a release. “The taxes ignore the major culprit – matching housing supply and demand within a reasonable timeframe. Additional taxes, whether targeted at foreign buyers or speculators, do not reduce the gap between when a housing project starts, and when it is available to purchase.”

The industry insider warned that the industry reaction will go well beyond mere press releases expressing concern.

“The industry is fighting tooth and nail to water down the budget measures,” the whistleblower added. “They’ve hired troll farms to infiltrate social media platforms and push the real estate industry narrative that NDP is ‘punishing’ homeowners.”

The whistleblower is confident that Premier John Horgan’s government will prevail despite industry push back.

“But I don’t believe any amount of narrative control is going to help the industry,” the insider said. “The only reason the bubble kept going for so long was the fact the the BC Liberals turned a blind eye to crime and corruption in our fentanyl-fuelled industry.”

“The criminals know that [Attorney General] David Eby means business,” the whistleblower concluded. “They’re now cutting their losses and fleeing, and the market will correct itself to align with fundamentals.”

AddressNeighbourhoodOriginal PriceCurrent Price% difference
10XXX SEAWARD COURTIronwood$5,880,000$1,588,000-73.0
11XXX BLUNDELL ROADMcLennan$4,680,000$2,380,000-49.2
4XXX ALPHA DRIVEBrentwood Park$2,980,000$1,998,000-33.0
7XXX BROADWAYMontecito$2,300,000$1,699,000-26.1
4XXX RUTLAND ROADCaulfeild$2,899,000$2,299,000-20.7
6XXX EAGLERIDGE DRIVEEagleridge$2,988,000$2,385,000-20.2
3XXX W 1ST AVENUEPoint Grey$5,699,000$4,588,000-19.5
8XXX PASCO ROADHowe Sound$4,888,000$3,989,898-18.4
6XXX MARTYNIUK PLACEWoodwards$2,199,000$1,798,000-18.2
6XXX HUMPHRIES PLACEBuckingham Heights$5,500,000$4,500,000-18.2

[Photo Credit: Province of British Columbia]

References   [ + ]

1. http://bcbudget.gov.bc.ca/2018/default.htm

26 Responses to Asking home prices fall by double digits in Metro Vancouver as BC budget begins to bite

  1. Jagdeesh says:

    I’m a fan of your reporting – you are providing much needed independent coverage. This headline however hearkens of fake news – despite actually being based on a real observable listing. There is likely more at play if a property drops 73%. Your article would have been as relevant had you used the percentage from the Alpha listing drop of 33% or one of the other properties in your headline. Also it is possible that there are other distress factors at play with these price drops. That said, keep up the reporting, it is gaining traction.

    • ThinkPol says:

      Thank you for taking time to comment. We agree with your assertion, and as such, have decided to revise the headline and lede to better reflect the body of the story.

      We apologize for the poor choice of headline, and thank you for bringing it to our attention.

      • Allie G says:

        Blue dell Road property is STILL idiotically listed. Assessment is only $1.5M. What is it? Shady realtor trying to hoodwink a sucker into thinking they’re getting a bargain because the asking prices has dropped 50% when in reality it is still listed about $800,000 too high?

      • Edmund Yang says:

        I already confirmed with the listing agent that it was a listing data entry mistake. They missed the “1” when the data was input into the system. So they have to change the listing price.

        Regards,

    • Allie G says:

      Exactly. The Seaward property listing was OBVIOUSLY a typo. $1,588,000 misprinted as $5,880,000. The Assessment Inc it is only $1,235,000. And frankly isn’t worth anything over $1M.

      • Allie G says:

        Alpha Drive property was sold at the end of 2015 for $1,272,000 A’s a tear down, new house built in 2016. Then some poor schmo paid $2,600,000 for it three months ago. Clearly realizing now they over paid.

      • Allie G says:

        Broadway property was assessed in 2016 at $1,274,600 and in 2017 at $1,530,000
        I don’t see a listing of $1.7M as a “panic” sale … it’s STILL too high for that POS on a small lot.

      • Allie G says:

        Rutland property? A “bargain” at the new price of $2.3M?
        Assessed at $2,391,300 its a FIFTY year old POS house – so land value!
        $3M Original List? A joke.
        At least THIS one is NOW reflecting the 2018 reality.that houses are selling at Assessment.

    • Allie G says:

      These are mostly examples of illusionary price drops. Below is an example of a house built in 2010 in Surrey.
      Does anyone think an ordinary house in Surrey really appreciated 240% in the last 6 years from $606,000 to $1,450,000?
      Do you think it logically increased 200% to the new list price of $1.2M?
      How about 177% to current Assessment of $1,072,000? NO. In a normal RE market it would be $725,000 after six years.
      17313 64a Avenue, Surrey
      Change: -$249,100.00 or -17%
      $1,200,900 List Price Feb 23, 2018
      $1,450,000 List Price Feb 5, 2018
      $1,072,000 Assessment July 1, 2017
      $970,000 Assessment July 1, 2016
      $606,000 Assessment July 1, 2012

  2. Sharon Best says:

    Suggest your reporting about the Richmond listing is just not correct – it still picks up as $5,880,00 with some realtors. http://www.turbotap.org/homes/10700-seaward-court-richmond-ironwood-homes-r2240652/

    Did you verify this with any of the realtors that are showing the listing on their websites?

  3. Concerned Citizen says:

    The news was deleted on r/vancouver subreddit of Reddit. There is a suspicion that one of the mods is working in the real estate industry.

  4. Anonymous says:

    This realtor is saying the increase in foreign buyer tax is a non-event.
    The tax was effective on Feb 22/18, but he saying it would be grandfathered in? The government is giving a 3-4 months window? Then he claims the government hardly collected any tax on this because people got their PR. The government had already said they collected over $100M in the first 7 months. I know realtor hardly get penalize but this is totally ridiculous. Don’t they get sue if they sell a drug dealer house without disclosing it to the buyer? So how can he outright lie with his face and name out there.

    https://www.youtube.com/watch?v=cTQlkLQCIOA

    • Anonymous says:

      I would thought the real estate board hire trolls on Twitter. Like Real Estate Egg @verus_praedium or SUE DOHNIMM @SUEDOHNIMM.

      And UDI Pacific Region @udibc

  5. nonconfidencevote says:

    Ahhhh yessss.
    De-list and re-list at a lower price as a “new” listing.
    Oldest game in the realtor deck of bait and switch cards.
    Never mind the NDP regulations for flipping, laundering, etc.
    Lets see what kind of hole the new B20 mortgage rules hammer in the sales/price stats.
    Rising interest rates……
    Tightening lending rules……
    Jan 1st was the implementation of B20 and I’m thinkin the Spring market is going to be a smouldering hole of low sales and a flood of listings……..
    Market meets meltdown.

    So….
    Return those leased Audi’s my realtor salesmen.
    This party’s over.

    • Nofanofkneejerklegislation. says:

      Nonconfidencevote, you don’t get it. If the cost of real estate goes down the tubes, the people stuck with the mess will be the poor working stiffs who just managed to qualify for their mortgages. They will be upside down and the banks will refuse to remortgage when their term comes up. Meanwhile, the guys with the money will just wait things out. That’s how it plays out every time.
      Jobs will be lost because many of them are dependent on building homes. The results will hit everyone, and the poor and middle class will suffer more than the rich.
      The government won’t balance its budget because its counting on current real estate values to generate its taxes. It will go down as another case of government mismanagement.
      My philosophy is: It doesn’t matter who is in government, it’s always the wrong party. None of them seem to get it right, but it’s especially the case when the tail is wagging te dog, as we have it here in BC.

      • nonconfidencevote says:

        Kneejerk.
        Well,
        I that vein of thought.
        No amount of legislation OR free market principles will save “Fools and their bad money decisions”

        ANYONE who has purchased a house or condo in the last 2 years is going to have their asses financially handed to them.
        AND
        As I have repeatedly stated. It isnt the populist NDP Knee Jerk reaction.
        It will be the B20 rules and rising interest rates that will truly crush the Ponzi known as BC Real estate.
        Banks are tightening their lending in anticipation of the gutted prices.
        The NDP regulations are just the “much too late” icing on the cake. Pouring gasoline on a fire just helps it burn that much faster.
        NDP gas meets Ponzi
        ANYONE that thought this fantasy of historic low interest rates and historic high housing prices were going to keep going on forever……..

        “Fools and their money are soon parted”

        but when one realizes people have been raised on “New Math” and “Gender equality” rather than real world issues……

        Joe Average losing his house?
        Banks lending to people that are hanging on by their fingernails?
        Mortgages handed out like candy to uneducated fool that couldnt balance a chequebook?

        Fair?

        No.

        Am I surprised at the ensuing financial shitstorm about to envelope BC?

        No.

  6. Jorin says:

    That 1st richmond listing was a mistake, it’s one of the shittier neighborhoods in Richmond and that lot isn’t subdividable, or zoned for commercial/multi-family. I believe the realtor forgot the 1 in front of the 588,000 making it seem like 5880000.

  7. Anonymous says:

    I’m sorry, but you’re using properties that had their price adjusted LAST JULY and ended up selling for completely different numbers. The alpha listing sold for $2.6 in November. The Seaward listing was clearly a typo…

    No clue who your insider is but I don’t think they have any proper information.

  8. Bob says:

    This article is total BS. 10700 Seaward was listed at the end of November for $5.8M but reduced the price to $1.588M on December 20th. The house was re-listed on February 14 for $5.8 and right away reduced to $1.588M.
    Also 4655 Rutland Road was listed at $2.9M back in October and before the end of 2017 the price had been reduced to $2.3M. It was relisted on January 10, 2018 for $2.6M and then reduced to $2.256M.

  9. Bob says:

    4679 Alpha Drive was listed on September 13, 2017 for $2,980,000 and reduced to $1,998,000 before the listing expired on October 27, 2017.
    I can see why there is no name attached to this article. Maybe next time call a few of the listing agents or get a reliable “industry insider” to send you a history of the listings before publishing such an embarrassing article. Or perhaps stick with writing fiction.

  10. OFF THE CHARTS says:

    What’s happening in Victoria, where home price NEVER GO DOWN!

  11. OFF THE CHARTS says:

    What’s happening in Victoria, where home price NEVER GO DOWN!? Unemployment amongst realtors is looking pretty widespread.
    But prices keep going up! Or do they?

  12. Lori says:

    This is such a the lack of real investigation and is completely irresponsible reporting. As stated above, this was clearly a type O. It’s articles like this that create panic in people that are not educated in what is really happening in Real Estate.
    Please do proper research beside printing articles like this (fake) news. Yes the market has come down in detached homes in Richmond approximately 10%. I pray to God that the NDP doesn’t take us into recession.

    • Anonymous says:

      Unintended consequences is what the NDP minority government faces right now.

      Sure it wants to bring down real estate prices so “regular folks” can afford to buy SF Dwellings SOMEWHERE in urban(e) BC.

      But the costs of this economic engineering experiment could be huge and negative for us.

      Why?

      Looking at the above story, which is not fake news to me, indicates that “foreign” capital is starting to “leave the building.”

      Therefore when and from where will NEW SOURCES OF CAPITAL come?

      If from nowhere, then watch BC’s economy start to rot on the vine.

      If capital does flow back, then the lenders will demand higher interest rates for their money because BC will be seen as some sort of financially unstable Venezuela “light”, a country that the Crazy Left BTW thinks is the new route to take to attain political nirvana and utopia.

      Careful what y’all non-real estate holders wish for.

      Oh, yes. And if capital stops, then where will the new rental units come from? Not the government, because it will go bust in the process.

      Capital is capricious and unfaithful unless you keep (as a borrower) supplying the diamonds and pearls.

      • Ted Cruz says:

        What are the unintended consequences- that the average person could not buy a home for their family and live a comfortable life?

        I am directly involved in the housing market and pray that it crashes hard and long.

        Who did it benefit for the last 5 years? Rich overseas buyers that used the housing market as the stock market, every tom dick and harry became a savvy investor and a qualified builder?

        Venezuela? You have no clue or idea what you are talking about. How about you compare vancouver to another Canadian city.. like Montreal.

        Prices will drop by 15-30 % or more. Alot of so called savvy investors and builders will loose their shirt because of greed, things will normalize and life goes back to normal for vancouver residents.

        I hope NDP further takes more measures including banning overseas buyers all together. Vancouver should increase the empty home tax to 5%.

        Have you seen all the empty homes and condos being listed for sale the last 2 weeks, the beginning of the crash.

        Anyone wanting to buy, hold off for while until seller desperation kicks in.

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