Five examples of Metro Vancouver homeowners losing big in a falling market
Credit to Author: David Carrigg| Date: Mon, 18 Nov 2019 14:00:55 +0000
Some Metro Vancouver homeowners who bought just before or just after the start of the market correction in the summer of 2016 and have now sold their homes are being hit with staggering losses.
Naturally, this has become Twitter fodder, so here’s a look at some of the big recent losses as highlighted by Twitter handles Mortimer and Vancouver Real Estate Flip Flops.
Mortimer posted that the owner of this property in the Upper Delbrook neighbourhood took a loss of at least $700,000 on a June 6, 2016, purchase.
According to B.C. Assessment Authority records, the buyer paid $2.45 million for the 3,400-square-foot home on a large 12,000-sq.-ft. lot. Zealty.ca records show the home, that’s renovated and even has a pool, sold last month for $1.75 million. The asking price was $1.999 million.
In what is becoming more common, after making dozens of posts on loss takers, Mortimer took some abuse from a local realtor.
I get the sense I'm not getting a holiday card from this realtor…
I guess that's how he starts a "real" discussion…
I don't even own a clown 😉#vanre pic.twitter.com/aYqf6uDYG2
This is another one from Mortimer, showing a $500,000 loss on this West Vancouver property that was bought on April 25, 2017, as a tear-down, for $2.2 million. The Metro Vancouver real estate market began its downturn in the summer of 2016, so perhaps the buyer thought the worst was over. Regardless, it was sold this month for $1.7 million. The home has stunning water views on a very large lot (over 18,000 sq. ft.).
KABOOM!! 💣💣💣
$500,000 loss (+ expenses) in West Vancouver
5375 THE TERRACE ROAD, West Vancouver
Bought 2017 $2,200,000
Just sold for $1,700,000
2018 Assessed: $2,056,400
2017 Assessed: $2,046,900
Seller: 1130528 BC LTD#vanre pic.twitter.com/7t6B5mV25l
This one was spotted by Postmedia News. The old home on a large 33-by-136 lot in Dunbar was bought in 2015 by a student named Yu Lin for $2.5 million. The home was assessed at just over $3 million in 2018, but as of June 30, 2019, was valued at $2.527 million. The home was originally listed at just under $3 million; however, when there were no takers, realtor Layla Yang brought the price down to $1.888 million and there was a quick sale for $2.050 million on Sept. 30, 2019.
So the owner lost $450,000 over four years.
This home at 4047 West 18th Ave. in Vancouver recently sold at a $450,000 loss.
Vancouver Real Estate Flip Flops dug into this one to find a likely loss of hundreds of thousands for the developer. In May 2015, an old home on this standard-sized lot in Dunbar was bought for $2.055 million. Less than a year later, just before the market started to fall, it was sold for $2.768 million. So at that point there was a profit of $713,000 made in 10 months (and the writer notes that back then that was the story).
However, the developer who bought in 2016 tore the place down and set about building a 2,900-sq.-ft. luxury home on the lot. It was listed in April 2019 for $4.28 million and sold recently for $3.55 million. So, on paper, that’s a profit of $713,000. Then take away the transaction costs and there’s $614,000, minus demolition costs, permits, architect fees and building costs, and VREFF estimates the return was $118 a square foot. It costs roughly $300 a square foot to build from scratch in Vancouver.
"GREATER FOOL" SPEC BUILDER LIKELY LOST HIS/HER SHIRT ON THIS SALE
3952 21st Ave W, Dunbar, West Side #Vanre
Purchase history:
April 2008: $1.207M
May 2015: $2.055M
Spec Builder then paid a $700,000 premium ten months later… March 2016, $2.768M
I'm sorry, but when you're pic.twitter.com/HKa3XZllTe
Another Dunbar doozy here. Mortimer points out this 2,227-sq.-ft. home on a standard lot sold for $3.2 million in March 2017 (about nine months into the downturn). The home was assessed at $3.075 million on June 30, 2019, though that figure fell to $2.628 million during the most recent assessment. After sitting on the market for 70 days, the home sold for $2.408 million. So in 31 months, the owners lost $792,000 — that’s $25,500 a month (not factoring in the hefty realtor fees and legal costs).
KABOOM!! 💣💣💣
$792,000 loss (+ expenses)
3333 W 22ND AVENUE, Vancouver
Bought 2017 $3,200,000
Just sold for $2,408,000
2018 Assessed: $2,628,000
2017 Assessed: $3,078,000#vanre pic.twitter.com/xHyDzNxqs8
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