Re: Will Vancouver house prices ever go down?
 

A couple articles from the last day or so on housing.

Are young homeowners doomed if housing prices drop? - Business - CBC News

I know a couple people under 40 who would be SOL if interest rates go up, they can only afford their mortgage if they have a renter, they already talk about how screwed they would be if interest rates went up.


Scorching Toronto, Vancouver housing markets push Canadian home sales higher in October | Financial Post

Vancouver in the lead, followed by Toronto. Edmonton, Calgary, Saskatoon and Regina not so hot.

Re: Will Vancouver house prices ever go down?
 

Talked to a realtor this week who tried to convince me that house prices were set to fall next summer. Suggested that I sell now, rent and wait. Must have thought I was an idiot. I know I am but I don't like being taken for one.
So, apart from trying to predict the future and getting me to launch myself into space, I don't think he knew any more than I did.
But from what he told me he's onto a cushy number. He charges 7.5% on the first 100k and 2.5% on the balance and suggested that this was the norm.
When we left the UK our estate agent charged 1% and he had a staff, shop and advertising to pay for. Also, I could have achieved a lower commission rate but didn't like the man.
I'm not whining and I accept that this sort of thing apparently works for canadians and americans, but it's a strange system and it's open to abuse as you probably already know.
He told me that you can find lower commission realtors but he wouldn't point any prospective buyers in their direction, not in the club apparently and he wouldn't get quite such a good payday from the seller's realtor. Also since both buyer's and seller's realtors dip into the seller's commission it appears to be in everone's interest, apart from the buyer ie the one who has to fork out the money, to inflate the selling price as high as possible.
So are house prices set to continue rising? What do you think?
A bit like bank bonus's if you ask me, daylight robbery.

Re: Will Vancouver house prices ever go down?
 

The ones I know all make like 5% - very cushy numbers for essentially nothing else other than sharing "recent sales figures". I've come across some dodgy as *** realtors and this is what society is rewarding
I can't believe that realtor tried to get you to sell your house like that - these people are unconscionable. I should be surprised but on second thoughts, I'm not.

Re: Will Vancouver house prices ever go down?
 

Realtors here are aggressively trying to get people to sell, inventory is running low at the moment and demand high, but few want to sell, and realtors are just a bit desperate.

I know at one agency the listings are down 40% vs last year, but only a certain amount of people want to sell, hopefully developers can get some more houses built and ready to meet demand.

Re: Will Vancouver house prices ever go down?
 

I see, I can't get over how unethical some can be though regardless but I guess I just need a reality check :)

Cheers.

Re: Will Vancouver house prices ever go down?
 

Have the properties been refurbed? That happens sometimes with older properties sitting on expensive lots. A developer will put 100K into smartening up a very dated house, and then flip it (often to out-of-towners) for another 200K profit.

Re: Will Vancouver house prices ever go down?
 

They are probably safe. They aren't going up any time soon.

Re: Will Vancouver house prices ever go down?
 

It is. Commissions are always negotiable.

And he has business expenses too. Like advertising. He may not have his own office but he is certainly paying a proportion of the costs of a shared office and staff.

We (I) have done this to death on here but there is very little incentive for a buyer's realtor to persuade you to pay more than you want. His route to riches is to find a house you like at a price you are prepared to pay. That said, your realtor has a duty to tell you if what you are offering is below market value. The seller's realtor has a duty to get the highest price possible.

I think that house prices will continue rising as long as effective demand exceeds supply.

Re: Will Vancouver house prices ever go down?
 

Seriously? 5%? The usual commission rates in BC are $7,500 plus 2.5% of the price above $100,000. This is split between the listing and selling agent. Then the agent has to pay their brokerage charges and all their other expenses.

The realtors I know would fall off their collective chairs (and maybe even murder their grannies) at the thought of making 5% on a house sale.

Re: Will Vancouver house prices ever go down?
 

And I am saying that ours did not do this - and anytime we were interested chided us to overbid. He spoke FOR the sellers' agent. I have his name if anyone is interested.

I'm not arguing against an opinion - I am telling you of a factual experience

Re: Will Vancouver house prices ever go down?
 

I may have the % wrong but not the actions/behaviors - good that you know a good one, Jon, not everyone has clients or logic on their side

Re: Will Vancouver house prices ever go down?
 

I do agree here on the expenses, the things they pay for can be a mile long. Where my wife works as an admin, the agents have to pay a fair amount including down to every sheet of paper they use.

The older agents do well after costs, but some of the younger ones get very little after the costs are deducted, but they may only have 1 sell in a month.

Re: Will Vancouver house prices ever go down?
 

Many are rolling in it in the present market conditions

Re: Will Vancouver house prices ever go down?
 

Zombie nation — Greater Fool – Authored by Garth Turner – The Troubled Future of Real Estate Vancouver market gets a mention

Re: Will Vancouver house prices ever go down?
 

Love that street sign!

Vancouver gets a mention, but not much of analysis...he basically lumps it in with the rest of the Canadian economy which, apart from interest rates, has different fundamentals.