Beyond Bubble: $9 Million Vancouver Teardown; Ordinary Houses Sell for $Millions Over Asking Price

MishTalk

There are bubbles, then there are really bubbles. I am at a loss for words how obscenely overpriced the Vancouver housing market has become. Sellers list “low” prices hoping to start a bidding war, and the strategy works.

by Mish

For example, an ordinary bungalow on a 44′ by 122′ lot that was “attractively” listed at $3.188 million, spawned a bidding war and sold for $4.19 million.

Inquiring minds may be interest to see what $4.19 million buys in Vancouver.

“Perfect for Families”

The Vancouver Sun reports Vancouver Home Sells for $1 Million Over Asking Price.
The Dunbar area bungalow was listed for $3.188 million and sold earlier this week for $4.19 million.
Just over a month ago, a Point Grey home with a view sold for $1.172 million more than the asking price. The sale price for the house on Bellevue Drive was more than $9 million and the new owner planned to rent it out then tear it down and rebuild in a couple of years, according to the realtor. The house had not been updated.
But the 71-year-old Dunbar house has been fully renovated, according to the MLS listing. It sits on a 44 by 122-foot lot and has a view from the back of the North Shore mountains. The house has a new roof, updated bathrooms and a gourmet kitchen as well as a one-bedroom basement suite.
“Perfect for families,” says the listing. Or, “hold and build.”

What does $9 Million Buy?

With that “perfect for families” bungalow going for a mere $4.19 million, inquiring minds no doubt wonder what a $9 million teardown looks like.

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It was the view. It is spectacular,” said Park, a realtor with Sutton West Coast Realty.
She said the house was an estate sale and the buyer plans to rent out the place then rebuild within a couple of years.
“The house needs a lot of work — at that price it makes sense to rebuild,” Park said.

Anyone who can make sense out of this is crazy.

That said, I can explain what’s going on: capital flight and desperation to get money out of China, regardless of price.

Mike “Mish” Shedlock

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