July 18, 2017
In recent months the real estate market in Vancouver has been undergoing some dramatic changes. The month over month rises in value were driving a speculation goldrush. However recent measures by the civic government, as well as tightening of Chinese capital controls have started to show the first signs of the ‘pop’ in this Vancouver real estate bubble.
"The first signs of the 'pop' in this Vancouver real estate bubble"
I have been watching home prices in Vancouver over the last year, and today marks a sudden discounting of 4+ bedroom single detached homes under $1.5 million in Vancouver and Burnaby, which is a real cross section for young families that are trying to get into the market.
Of the 47 listings I looked at, 20 (42%) have discounted their initial asking price or sold for under asking, and new homes coming on the market are starting at a lower asking price. This is a sign that there is a rapid sell-off starting to take place as we transition into a buyers market.
One property, 271 E 62ND Ave Vancouver, may have been the first house to offer a significant discount in what could have been the sensing of immanent decline in prices. Originally listed at $1,499,000 on 05/09/17, they took a dramatic discount and lowered the price by $400,000 to $1,099,000 in order to force a bidding war. This may have worked for the owner of the property, with a final sale at $1,308,000, which is still a discount of $191,000!
This deep discounting has seemed to spark a sell off frenzy, with discounts starting to appear on houses that have been on the market for more then a week.
Here are some highlights of recently discounted 4+ bedroom houses in Vancouver & Burnaby priced under $1,500,000 on July 17, 2017:
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