Sunshine Coast Price Drop: How low will they go?

[Skook]

On March 17, 2014, the property below dropped its list price $9,900 from $324,000 to $315,000.

Was this the first price drop? Of course not. This is number 6 since the list went active on September 1, 2013. However, the earlier drops were for the most part piddling, “oh, god, I don’t what to do it” kind of drops as you can see below.

Now, if you’ve read RFM’s ‘Pricing Property in a Declining Market’, you will know that this seller has failed item #3: Reduce the listing price aggressively or you will chase the market to the bottom:

Quote:When property values are declining, reducing the price to the current market value is not sufficient. The price must be below market value to sell the property.

So, this seller is now slowly bleeding to death by a thousand little cuts instead of initially applying one deep cut across the carotid and damn well getting it over with in one fell swoop. But, the seller is in good company on the SC. By the way, the property is still priced above assessment.

It was the design of the house that made me sit up and notice its September 1st listing because there aren’t many like it. On my walkabout in West Sechelt back in 2009-10, I discovered two others: one on Emily Way in Cascade Heights and the other on Jasper Rd. Darn if they aren't both on the market now, too.

5736 Emily Way was listed September 20, 2013 at $359,000 and in October it dropped the price - the only drop so far. 6340 Jasper Rd was listed July 16, 2013 and is refusing to budge on that list price - at least publicly.

My thought is that all three homes will have trouble selling because of that house design. It will appeal to a very select few and to find three such buyers could take a very, very long time - unless, of course, they find a way to make themselves irresistible. What way is that? Price, baby, price - it's the only option. So, get out the eraser and that sharp pencil.

June 15, 2014:

6101 Gale Ave South continues to slowly bleed to death. Another little cut (↓$6,000) was inflicted on May 12th. The total number of wounds over the last ten months stands at 7 for a total drop of $30,000 or -8.8% from the original asking price (updated spreadsheet below).

After nearly a year on the market, 6340 Jasper Ave finally dropped the asking price. Drum roll, please…↓$4,000. That’s right, the price was lowered by an incredible 0.9% to $435,000 from $439,000. No doubt, we can expect to see the process repeated in June 2015.

5736 Emily Way has not lowered its asking price; however, I thought the Realtor ad in this month’s Sunshine Coast Real Estate Guide was noteworthy. Yep, I would say the seller has definitely left town for greener pastures. Guess whoever buys gets to play landlord for a spell.