If 20,000 listings, near-zero sales and word-on-the-street consensus isn’t enough to convince you that Vancouver real estate is in the thralls of meltdown, maybe this will turn your opinion: A local developer is now offering a “market value guarantee” to all buyers of the “European-inspired” Surrey condo, Morgan Crossing.
Details of this so-called guarantee are contained in a comic-book style speech bubble in the Morgan Crossing ad. Here’s how it reads:
Morgan Crossing. A community, so different, so right that its value is here to stay. And to prove it, Larco Investments Ltd, the same people who brought you The Village at Park Royal, will confidently guarantee the market value of your home by up to 10%*. So if there are any downward value fluctuations, you’ve covered by a healthy margin.
Even if you read the fine print after the asterisk, it’s difficult to say how much protection this actually provides. I’d ask the marketer for the specifics, but I suspect an email from me would go unanswered. (If you have a copy of the guarantee details, please feel free to send them my way.) Update: Additional information about the guarantee has been provided by the marketer and can be read in the comments.
As for 10% being a “healthy margin” against depreciation, I guess it depends on your definition of healthy. In China, Olympic officials define the air over Beijing as “good.” Meanwhile, Ozzie Jurock hints at the possibility of a 17% drop based on historical patterns.
But really, who cares about percentages at this stage of the game? The party’s over. Those who bought to make a quick buck are going to lose, and lose big. The Vancouver real estate elevator, once ascending to such great heights, is now on the verge of a furious free-fall.
Have a good day.