Wednesday, June 18, 2008
Look out bottom here we come
I've enjoyed reading some of the recent comments. Thank you for participating.
I'm off for a few days so here is an open topic post to discuss the turning of Vancouver's housing market.
None of the so called experts have declared it yet but the Greater Vancouver real estate market is definitively over the hump with sales plunging, listings skyrocketing and its all downhill from here. Just wait until we get some momentum behind us.
Where will the market bottom?
Will we overshoot to the downside?
Will fundamental values be restored?
What is fundamental value?
How long will this process take?
What lessons can we learn from other bubbles bursting around the world?
I heard an anecdote yesterday of a developer who is trying to unload the last few condo units in a decent project but they just aren't selling at the asking prices. The developer is currently asking $365,000 but would accept $275,000. My question is - if they want to get rid of it so bad, why don't they just drop the ask price? Oh, I know, greed. They'd like to see if there is another greater fool out there who doesn't have the cajones to go in with a ridiculous lowball offer. If you are buying right now make ridiculous lowball offers. Developers and long term owners have a lot of margin to work with so they may surprise you and accept.