DATE

February 13, 2017 Newsletter

Steve Saretsky -

Zero Risk, No Money Down

Happy Monday Morning!

Zero risk, no money down, no interest for 5 years! Sounds like an advertisement from a used car salesman.. Nope, it’s the BC Government’s 5 year interest free loans.

The entry level market appears to be heating back up again, despite the detached market crumbling underneath us. In January, 25% of Vancouver condos sold over asking price. That’s down slightly from 38% the year previous but there seems to be a lot of momentum right now.

Meanwhile, over in the Fraser Valley it’s even worse. So far in February, 37% of condos have sold over asking price. The condo market is littered with first time buyers competing for the few condos available. Many bidding up prices with cash in hand from the BC government. So far the program has approved 356 first time buyers since January 16.

Gambling with BC taxpayer money, there appears to be little cause for concern about the health of the market. Risk aversion? What’s that?

Just a couple weeks ago I was in a multiple offer situation with one of my buyers. After reading the strata documents it was discovered the unit was about to be hit with a $20,000 levy to rain screen the building. We walked away from making an offer for obvious reasons.. To my surprise, the Richmond condo still received three offers and sold over asking price. That lucky buyer will soon be nailed with a 20k levy on their 300,000 purchase.

A week later and a different buyer, I was outbid again. This time on an East Vancouver condo. Priced at $299,000 the 50 year old 515 square foot unit sold for $50,000 over asking price, subject free. Setting a new record in the building.

I see and hear similar cases on a daily basis hence my pessimism on the health of the market. Oh well, time to refill the punch bowl…

Cheers,
Steve

Join Steve’s weekly Newsletter Below

Subscribe to our mailing list


 

Join the Monday Newsletter

Every Monday morning you'll receive a short and entertaining round-up of news on the Vancouver & Canadian Real Estate markets.

"*" indicates required fields

The Canadian Economy

Steve Saretsky -

The Vancouver Real Estate market made headlines this past week with a whopping 64% increase in sales on a month-over-month basis. While headline readers may be stricken with a sudden panic of missing the dip (if you can call it that), further analysis suggests there really is nothing to fear....

Stephanie McHugh -

Tudor House Vancouver by Formwerks Tudor House by Formwerks Boutique Properties is a boutique development in pre-construction phase to be located at 441 W 63rd Avenue in Vancouver’s Cambie Corridor. The architecture on this 4-storey building is classic Tudor style. There will be 15 residences, including townhomes with 1, 2,...

Stephanie McHugh -

Cambie Gardens Vancouver by Onni Group Cambie Gardens by Onni is an ambitious new development coming soon to the Cambie corridor in Vancouver. This impressive master-planned community is located at 650 W 57th Avenue, which is at the corner of 57th and Cambie. It will consist of 2,160 residential condos...

Steve Saretsky -

Midtown Central Vancouver by PortLiving – 702 E Broadway Midtown Central by PortLiving is a 4-storey mid-rise building coming soon and preselling in the flourishing community of Mount Pleasant. Midtown Central is located in the heart of Mount Pleasant at 702 E Broadway, and it is within convenient walking distance...

Steve Saretsky -

Cardero Vancouver by Bosa- Georgia & Cardero Introducing Cardero by Bosa Properties, a cornerstone connecting Coal Harbour’s seawall, Stanley Park, and the downtown core. An illustrious gateway to a famously livable city, Cardero blurs the line between structure and sculpture and is destined to raise the bar for architecture and...

Get the Saretsky Report to your email every month

The Saretsky Report. December 2022