Vancouver Bubble Watch: 25-Person Bidding War

I was sent this by someone today on the latest madness in the Vancouver real estate market. It sort of blew my mind — 25 bidders, $655,000 premium, and 34% over the asking price for a house on 50×125 lot.

Kitsilano house goes for $655,000 over asking

Kitsilano, B.C.

Published Thursday, Apr. 21, 2011 6:02PM EDT

2466 WEST 14TH AVE., VANCOUVER

ASKING PRICE $1,895,000

SELLING PRICE $2.55-million

PREVIOUS SELLING PRICE $531,000 (1996)

DAYS ON THE MARKET eleven

THE ACTION: This contemporary West Coast residence in Kitsilano was listed for $1.895-million on a Friday, but the first showings were held a week later. This tactic, combined with its attractive price point, helped retain the interest of so many buyers that 25 made an offer. The one accepted presented $655,000 more than the asking price.

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  3. Google Trends: Vancouver and the Real Estate Bubble
  4. Vancouver: The Last of the Really Great Real Estate Bubbles
  5. The Oil Supply Bubble

Comments

  1. John says:

    I was at the open house and congratulated the realtor on creating a zoo. Uncertain as to whether I meant that as an insult or not, he said "It's OK. It's a human zoo." And it was. I tried to film it on my iPhone but messed up.

    It was a very well put together design of a house with a pool, something very rare in Vancouver. It had a lot of utility – and too many small rooms by my count – but it was done. Architecture graduate design done.

    And it sold for 30 odd percent higher than ask…

    A lot has changed since then. Everyone has now upped their ask by even more than that 30% and houses now sit for weeks.

    • Paul Kedrosky says:

      Thanks for that update. Nice context. If you don't mind, I'll turnthis into a post.

      • John says:

        New update. House now listed for $3.4 million, or in Vancouver parlance, "Three point four." They did some work (hopefully combine rooms…) but I think the wait to sell time will be in months this time.

        Who the f wants to move to Vancouver in November???

        We locals all want to go to Hawaii, where – if you are a bona fide remittance man – life is much sweeter. And much cheaper.

        • John says:

          And another point… The buyer both the house for $531,000 in 1996 and sold it 15 years later for $2.55 million, a compounded annual increase of 11%p.a. Very good return, but not insane. The new owner wants $3.4 million – an annualized increase of 78%! A "good" return? It'll sit, and the annualized rate will plummet – even at the current ask!

          BTW- the neighbourhood has great streets, but it's not creme de la creme by ANY stretch. I'd move there in a heart beat – if it was $2 million. But then my view house is "only" $2.5.

        • Paul Kedrosky says:

          I see only 2468 West, not 2466, which was original property, accordingto Globe & Mail story. Different or same house?

          • John says:

            Same house. New lipstick. The "88" brand that people think appeals to Chinese buyers.

            As for address switch, I think the realtor is more likely to get that right than a reporter from Toronto's National Newspaper…

          • Paul Kedrosky says:

            Yep. Checked it elsewhere and it's same house. See post on site frontpage. Mind you, they did get rid of the pool side.