Vancouver Bidding-War House? It’s Being Flipped for 78% (Annualized) Gain

Remember that Vancouver house that went for $655,000 over asking in a 25-person bidding war last April? I posted about it here, and the original story is here. Well, the house is back on the market a mere six months later for an asking price of $3.5m, or an annualized 78%. (This house originally went for $531,000 in 1996.)

Here is the requisite graph:


A few provisos. The original story says the house was at 2466 West 14th Street in Vancouver, but the new listing says 2468 West 14th St. The pictures, however, are of the same building, so it seems like something is awry in either the original story or the listing. [-]

Pic1 Pic2


  1. Are there any public companies to short the Vancouver housing bubble?

  2. Paul Kedrosky says:

    I wish, but there are really aren't. The largest local homebuildersare all private, and the banks that play in the market are eitherprivate or national.

  3. I don't know how you remove a waterslide and get away with charging *more* for a house. They did – at the very least – put in new doors and a fence though.

    • Paul Kedrosky says:

      I can't wait until they hold the open house this weekend and have toalibi taking out the water slide. Huge trouble.

      • I visited the open house today expecting to snicker about a missing slide. I did not.

        The sellers had redone every single interior finish very nicely, had functionally opened up spaces with some clever wall moves, and put in very intelligent feature doors that are not cheap to install. (interior pocket doors, exterior panel walls etc.)

        They had done what I thought needed to be done when I first saw the house in Aprl. So this was not a raw flip. I was actually impressed by how they had further contemporized an already modern house design. They had obviously spent a chunk of money – and picked the right touches of grey!

        With respect to the market the realtor made a reasonable case for it being priced properly. As a nod to a slowing market though, he expected things to normalize with longer times to sell, and more subjects being placed by buyers. So that's autumn in Vancouver…

  4. Does anyone have an idea of the composition of "investors" doing this speculating?

    (1) Wealthy Asian money?

    Love to get some insight.

    I guess people are ok with this stuff after losing trust in the public equity markets.

    • It's nearly 100% Mandarin-speaking Mainland Chinese who bought passports to Canada after doing whatever they needed to do in China to grab the money and run. You can tell because in the last 25 years, the father immediately returns to Asia. But not this wave. Because they can't.

  5. It's common in Vancouver to apply to have housing numbers changed to include the number 8, a lucky number in Chinese. That could explain the house number discrepancy. This is especially likely because the address includes a 4 which is a very unlucky number.

  6. Only $3.5 million.

    Much cheaper than Bronte, Sydney, Australia.

    • What do you guys know, come out of your shells and see the world. World house prices especially in Asia have double to triple in last 18 months.

  7. TJ hooker says:

    china is prices have already started to ease off. The current generation is so infatuated with real estate— maybe it is because 70 million more people are born every year.. But a few years back i read an article on Amsterdam prices over 200 years and returns are 2% of inflation. NO doubt that prices are inflated but they could stay inflated for a lot longer then people expect..

  8. Banks are not seeing the inflation. Home price, food, energy all are over inflated not. Time to look outside the old excuse of CORE CPI.

  9. They probably changed the last number on the house from "6" to "8" because eight is a lucky number.

    If you want, I can drive by the house tonight and double check for you.


  10. OnlyTheBankersLaugh says:

    Wow, this is much worse than I thought. Of course, income does not matter as Vancouver is the best place on earth. Checked the 7 day forecast. Only 65 mm of rain. A little bit of a reno and, voila, push the price up a mil or 2. Makes perfect sense to all Canadians and reasonable people. Hope someone is buying for cash and can afford to lose half value at high end. I can see history repeat despite a media (TV, radio and print) that is a cheerleading shills for real estate. We no longer have an economy but only trade in housing. When the sentiment turns and a few start losing, the snowball effect goes the other way. Good luck to the gamblers out thar on crazy West Coast! You'll need it.