"This Is Pretty Freaking Nuts": Vancouver Home Sells For $735,000 Above Asking Price

Tyler Durden's picture

In Canada, an interesting paradox is visible.

On the one hand, the country’s oil patch is dying a slow death in Alberta, where the worst 12 months for job losses in 34 years is contributing to rising property crime, higher food bank usage, and a rash of unsold condos and empty office space in Calgary.

On the other hand, if you were to take a look at real estate in Vancouver and Ontario you’d think you were looking at home prices for an economy that’s thriving.

In fact, prices in Vancouver have reached nosebleed levels. In January for instance, the average selling price of detached homes was an astronomical $1.82 million.

Here's what that look likes like in chart form:

The madness has caused all sorts of abberations including the following listing which, outside of Silicon Valley anyway, represents what is perhaps the most absurd example of "greater fool" speculation since the Tulip Bubble: 



That listing eventually sold for more than $100,000 above the asking price despite the fact that it's clearly a rundown shack but as is always the case when dealing with speculative bubbles, things will invariably get frothier-er as evidenced by the fact that the home shown below just sold for a whopping $735,000 above the asking price, setting a new record.


"The house at 3555 West 1st Avenue was built in 1912, is 3,400 square feet and sits on a standard 33 x 120 foot lot without a view," Vancity Buzz notes. "The selling price of $4.23 million is about $1.6 million above the lot’s assessed property value."

For his part, real estate agent Brandan Price is incredulous. “For it to go over $4 million is remarkable. I had five offers,” he said. “These were local buyers just looking to make a shift who wanted to move into this area.”

“They were willing to sacrifice lot size to move into this area.”

Maybe, but things seem to be getting out of hand and part of the "problem" may indeed be demand from investors attempting to find a home for capital they've moved out of China. As Thomas Davidoff with UBC’s Sauder School of Business told Vancity Buzz: "These prices are getting pretty freaking nuts in my opinion."

“As a proposition for someone who’s going to live in that house and what you’re getting for four million plus – that is a ridiculous joke and that is not something that’s going to work for people who just make a living in Vancouver," Davidoff says. 

Sorry Thomas, but you're going to have to get used to it, because as long as the market expects a 30% yuan deval, Vancouver real estate is going to keep getting more "attractive". Or, in other words, the Canadian real estate market is going to continue to be one of the world's most attractive money laundering vehicles. 

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Father Thyme's picture
Father Thyme (not verified) Feb 29, 2016 7:04 PM

Nice Bush.

Al Gophilia's picture

Every Canadian but more so, every Vancouverite, should immediately list their property for sale. That should stop the rot.

BuddyEffed's picture

Is it on some central banks balance sheet now?

Stainless Steel Rat's picture
Stainless Steel Rat (not verified) BuddyEffed Feb 29, 2016 7:23 PM

Start with the United States and Canada.  Exclude the places poisoned by 150 years of industry.  Exclude the places where a race war will break out upon collapse.  Exclude the places that are too cold to survive without nearly free energy.  Exclude the places that will have no water supply in 20 years.  You are left with the Pacific Northwest.

Keyser's picture

I knew I should have invested in Vancouver real estate back in 1997 when HK went back to China... The mass exodus began then and I thought property prices were too high then with the influx of hot HK $$$... Little did I know... 

quintago's picture

BFD. Homes in Palo Alto, Menlo Park, Los Altos are routinely selling for several hundred thousand over asking, with one in San Francisco that ended up going for almost $4M over asking last year.

Laowei Gweilo's picture

it's awesome!


local Vancouverites are basically becoming sudden multi-millionaires


sell in Vancouver and retire in Kelowna lol

Son of Loki's picture

<< I knew I should have invested in Vancouver real estate back in 1997 when HK went back to China >>

I hear ya. My Dad is such a doh-doh; he watched a HK'er buy a whole block of houses in Calgary in 1996 for fear of Mainland China and it did not dawn on him what was going to happen.

willwork4food's picture

Don't blame your Dad. He saw what happened to the US and was logically questioning a good move that MIGHT have gone north.Funny thing is, people that don't gamble, don't take risks, just work their menial jobs still have something to show for it when the losers ask for a place to stay for the night.

Handful of Dust's picture
These 2 things will pop the housing bubbles in San Francisco and Silicon Valley



But the calculations assume that buyers are able to make a 20% down-payment, which on a median home in SF amounts to $240,000. And it also assumes the persistence of super-low interest rates and points for a 30-year mortgage.

Under these assumptions, households in SF wanting to buy that median home must have a minimum qualifying annual household income of $254,000, on top of the $240k in cash for the down-payment. And this is where the absurdity re-surfaces: the Census Bureau estimates that the median household income in San Francisco is $75,600 (it has gone up a little since that estimate).



Twee Surgeon's picture

Back in the 70's I was a big shot with the Operating Engineers, they asked me to go out to China on some deal to build harbors/ sell equipment etc; so I didn't know I was going on air-force one with tricky Dick, he was actually a very nice guy, very down home, I was quite young then, a little intimidated, at a Mandatory sort of party at the French Embassy, I met Chairman Mao and we were able to chat about small things for about twenty minutes, he was also quite charming, through his interpreter, quite humorous, he did make it clear though that Foreigners were going to buy America, he thought I was a Communist, he knew I was a Communist, I was the head cheerleader of the Communist party in a certain area, I was wrong and I fucked up, I'm sorry, I have ruined the Millenials future. Nixon never said a word to me other than "What's up with all these little Peanuts in a bag." I remember that he was going bald but his hair was soft, silky and lush, he ate a lot of Potato salad.

xavi1951's picture

So what's the problem?  My wife made us buy our house way over appraisal because "she wanted it!".....  This is NOT news if you are married.

BaBaBouy's picture

TYLER... What Are The 3 Rules In R-E ???

........... Location, Location, Location.

They want the lots, (there is zero new land being created)...

The few available will command high prices, as you show...

Same thing will happen with PHYs GOLD, when time comes, there will be little offered compared to the loads of paper fiats that chase it....... Watch...

Manthong's picture

Message to any Asian gazilionaire..

I have a half acre on a golf course.. Chicago suburban with excellent schools, transportation and shopping..  3K sq. feet, 3 car heated garage.. could use a little work but for a lousy 2 million, it could be yours.

Could be the new housing boom market…..

Oops.. I forgot to mention the 400A AC primary service. the 9’ below grade bunker with 18 inch reinforced concrete walls and a 5 foot walk down and 4’ steel door.. the upgraded n-gas supply for the BU generator.and the Plex buried hydraulic heating system over  2” of R-30 pink insulation.

..and there’s more…..

First guy with $ 2 mil gets it.




The9thDoctor's picture

"Pretty freaking nuts" is an understatement. All of this Real Estate speculation is destroying the middle class by pricing hard working people completely out of the market.

My proposal to stabilize housing prices and making housing affordable would be to charge a tax on LLCs on owning residential properties. Charge them $100,000 per property. Only natural persons should own single family homes. $100k would be a drop in a bucket for a mansion, or a multifamily project, but for middle class and working class single family homes, that tax would keep investors out of the market.

The other proposal would be to charge property owners $50,000 if they sell the property within 24 calendar months from purchasing it. This would get the flippers out of the market. Most homeowners stay in their property on average 11 years, so 2 years is nothing to a resident.

The real estate guys really hate me, but this would be the best way to help the 99%.

Manthong's picture

You are correct…

The  lower classes and the kids are being priced out of everything…

Their ability to work their way upwards is being diminished with every extra billion that the .01 percent glom up.

You don’t not even want to know how many college grads within my local area are living back at home with mom and dad.

The problem is that mom and dad do not understand what the government (fed, state, local) has done to them and their kid’s future.

I have been in my fortress for over 30 years.

Wasn't there a saying some time ago   "A man's fortress is his castle" ...

or something to that effect  :-D


nufio's picture

i think we should replace income tax with land tax. And most homeowners DO NOT stay in the property for 11 years. ON average the first house is sold within 5 years.

silverliberty's picture

They already have both taxes.  You think government pukes will cut their income, LOL!!!!!!  I guess babies come from storks and unicorns are given as birthday presents.  How about no government and no taxes?

Manthong's picture

"replace income tax with land tax"

oh, F me with a back hoe....

my F'n property (land) tax is higher per month than the mortgage debt I am about to extinguish. and is higher than the average cost for renting a house in my 'hood.

.... which is one of the reasons why I am plotting my migration at this very time.

I will be totally un-banked and way less .gov chained before the year's end.

Handful of Dust's picture

States with no income tax like Texas have huge property taxes as their revenue base. Sucks if you are retired with little income. I heard those new developments west of Houston have a 3.5% and higher prop tax. That, combined with the collpase in the energy industry is resulting in lots of For Sale signs as people are forced out of their overpriced and overtaxed houses there...is what I read.

mainstream media is useless's picture

Rent for single family homes would skyrocket

chubbar's picture

Here is the problem with that math, IMO. It doesn't take into account the absolute insanity of the Central Banks and their ability to shove money into preferred sections of the world that don't seem to mind blowing it on housing like this.

We are all looking at fundamentals and using logic to dictate where money should be flowing and how much should be paid for certain things. This hasn't worked. We've watched stocks go to insane valuations, bonds rally when it didn't seem like interest rates could go any lower and housing being bid up as in this story.

The amount of malinvestment these assholes at the FED have encouraged is completely beyond the scope of being fixed AND of recovering once it crashes. I really don't know what to do other than stack PMs and food, hoping I'm in a safe place when this bullshit ends.

Dr. Spin's picture

Gweilo, I do Chayon Ryu, and you?


Dr. Spin's picture

LOL, howz that working out for ya,,,


TheEndIsNear's picture

Where you're required to register all firearm purchases with the state police, and where the government in Salem are all Bernie Sanders style Socialists.  Oregon used to be a good place to live, but no more.

Stainless Steel Rat's picture
Stainless Steel Rat (not verified) TheEndIsNear Feb 29, 2016 8:52 PM

Well, just make Oregon great again. :-)

Dr. Spin's picture

Hey Ratt, I'm with you on that.  We should make Oregon the "Free State Project" of the West...


Lore's picture

Agreed. To a large extent, like Vancouver, Portland is lost to the collectivist greentards. Saltwater seems to do something to their brains: people get more sane the further east you go.

Midas's picture

Sorry to pick a nit, but Portland Oregon is a long way from saltwater.  The rest is accurate!

Prophet of Rage's picture

Meh. I wouldn't offer more than 3.8 million for that place.

All joking aside, I can't find a decent place in Portland area for less than 300k. Unless you want to live in a 1100 sq. ft. that is 40 years old.

I really hope this ends soon.

Stainless Steel Rat's picture
Stainless Steel Rat (not verified) Ignatius Feb 29, 2016 8:51 PM

+1 My comrade in picaresque pseudonyms, how strange that you know that I mispronounce it every time. :-)

general ambivalent's picture

Did you consider the Fukushima in the water supply?

And a little cold is better than pissing rain two thirds of the year.

Antifaschistische's picture

Natural economic selection....fools parting with money..

.the miney isnt being lost so no real loss. Do they pay property tax in vancover?

Bastiat's picture

Homes becoming detached from local fundamentals -- in certain cities they have become an investment vehicle.  Vancouver is a poster child but I suspect SF is not far behind.  Yeah, SF has the tech bubble driving the market but there is a surprising vacancy rate--people (or LLCs) are buying these properties and not even bothering to rent them.  This is the result of the extreme wealth concentration, and oceans of international liquidity, and ZIRP that we can thank the central banksters for. 

At some point it will cause social problems that won't be easy to contain, if the bubble doesn't pop first.



Handful of Dust's picture
Miami’s Epic Condo Boom Turns into Glut


Real estate agents see “looming” condo price correction.



Frankie Carbone's picture

Good point, once the tech bubble pops then l could see the entire San Jose / Palo Alto area go into a depression. 

I have had Tesla, Microsoft, Nvidia, and a few others try to recruit me to the area, one at Director level, and said no for six reasons: 

1. Taxes are confiscatory

2. Housing and cost of living are insane. 

3. The state is full of chock full of kooks.

4. I own a lot of nasty looking firearms that would be banned there.  

5. I believe that there is an aura of irrational exhuberance in the Valley that the economy does not justify.  

6. In the event of an economic collapse the place is a death trap. 

Manthong's picture

dude.. you understand basic economics unlike anyone from Sacramento.

I lived in Mountain View for a short while way way long ago.

It was sort of affordable and a pretty nice place to be.

A kid of a family friend is working for a game company out that ways now.

Excuse me, but what part of $6K/mo. to rent a small apartment makes sense to any sentient being?


Oh.. and what part of working for a game company makes sense, either?

I sense a little of that irrational exuberance, too.

dogismycopilot's picture


Fucking tax assessor in Vancouver is creaming his shorts right now waiting for new assessments. The Queen is going to make him an OBE for the money he is going to rake in for her. Any normal Canadians in Vancouver Kong will have to sell everything they own just to pay their property tax bill. Give it a year or two.


pitz's picture

Property taxes in Canada don't depend on absolute house prices, but rather on relative house prices.

chubbar's picture

And, the first thing that tax assessor is going to do is suggest that they raise salaries and pensions for all the city gov't employees. THEN, they will make sure that legislation is in place that these pensions and benefits can not be reduced in bankruptcy. In one fell swoop they will ensure that the real economy is enslaved to gov't spending in such a way that taxes can only go up. These canadians have watched the best of the best slimeballs in US gov't and have learned this lesson well.

Tall Tom's picture

Did you consider the Fukushima in the water supply?


I think that the Hanford Radioactive Waste in the Columbia River is just a bit more thretening.






Gotz to build dem Nuke Bombz after allz...


No worries. We all die and cancer is just such a pleasant way to go....NOT.


But they do have legal euthanasia.


They'll be more than happy...to put you down like a dog.


It is less expensive that way. They are budget concious. See?


And you all thought that those green liberal people are not fiscally responsible.


Think of the savings...



Frankie Carbone's picture

Holy shit. I was just starting to search for land in that region. Thanks for the heads-up. 


Miffed Microbiologist's picture

When I lived in Spokane I was amazed how much thyroid cancer was present. Muscular dystrophy has higher rates as well. I always suspected Hanford was related to this but it is hard to find any definitive studies.


Twee Surgeon's picture

No worries, it's just the inbreeding, a German traditioin.

Firepower's picture

bfd. just like the  Elite Castles In Feudal Manhattan http://wp.me/p2kmGE-1Mn


Vancouver is the new toronto is the new-newyawk

Echoless's picture

I lived in the PNW for 10 years I'm not going back your comment is bunk for anyone that's lived there and has their eyes open. If people really think theres some part of america they can live in when the SHTF they are kidding themselves. Why even mention a race war, white people are the most panicky thieving suspicious bastards out of everyone. No, the best plan is not to find a place where you can live in ignorance of percieved safety.

TheReplacement's picture

People have survived across the entire north of the continent for thousands of years.  You just have to adapt and accept the concept of working for it.

Noble savage.