Sunshine Coast Price Drop: How low will they go?

[Skook]

Well, my golly gosh...
What we got happ’nin at thet fancy Watermark at Sechelt?
Are dem dare price drops?

Yep, dem dare shur ‘ar!

Two Watermark resale listings dropped their prices today which grabbed my attention. I paid a little visit to my Watermark spreadsheet and said to no one but me, “Well, this is not looking good.”

This is so sad, isn’t it? I mean the developer and the Watermark marketing team worked so hard. I don’t know about you, but they certainly raised my expectations.

I guess I should have clued in when all the unsold units were thrown on the market back in May. So, what have we got here...in Phase 1 (5665 Teredo St) after 3½ years there are 12 unsold units (or 23%) and in Phase 2 (5725 Teredo St) after 2½ years there are 18 unsold units (or 35%). It’s definitely not the best situation for an owner wanting to flog their unit. I think we’ll be seeing a few more price drops before all this is said and done.

And, then there are all those unsold commercial units...sigh...oh, my.

April 12, 2015 Update:

#302 – 5665 Teredo St remains unsold with no further price drop.
#500 – 5725 Teredo St remains unsold with no further price drop.

Now here’s the rub for #500. There are now 4 of those expensive water facing units at 5725 on the market (including #500). Its neigbour #501 was listed back in June, 2014; #600 was listed back in October, 2014; and, #400 was added to the mix this past week. My thoughts are that these front units will have to have significant price drops to move because the smart money has gone. It’s the early in, early out flips that leave with a smile on their face and that happened with the Phase 1 water facing units. The cachet has gone from Watermark – the developer placing a rental ad on craigslist in early February sent that message out loud and clear. We shall see.

#203 – 5725 Teredo St dropped an additional $24,000 from its list price a couple of weeks ago.
#600 – 5665 Teredo St sold in January.

Look close at that #600 table. The seller needed to knock off a further $49,000 to move that baby. It sold at $250,000 – almost $35,000 below the original 2011 purchase price. Factor in all the additional expenses (commissions, lawyers fees, taxes, insurance, etc., etc.) and we have ourselves a real winner. I always wondered if it was an interior decorator that bought the unit based on how it was staged – if so, then maybe he or she can write off some of that loss.