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Victoria's housing market, home prices and values


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#3141 Victoria Watcher

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Posted 09 August 2020 - 10:18 AM

that's only partially correct.  

 

walmart sells bananas for $2.59 per kg. today.   if the government adds $100,000 in taxes per kg. what price does walmart now sell them for tomorrow?

 

because walmart also sells products at the highest price possible for their market and system.


Edited by Victoria Watcher, 09 August 2020 - 10:22 AM.


#3142 johnk2

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Posted 09 August 2020 - 10:58 AM

$100,000 of the price of every condo in downtown Victoria is attributed directly to the bureaucratic process.

Then you gave GST on top.

And the deed transfer swindle.



#3143 johnk2

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Posted 09 August 2020 - 10:59 AM

for me lincoln/heron is the prettiest streets of oak bay north of the avenue.  and just made very charming by the fact they are no-through.

Wilmot Place



#3144 spanky123

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Posted 09 August 2020 - 11:09 AM

that's only partially correct.  

 

walmart sells bananas for $2.59 per kg. today.   if the government adds $100,000 in taxes per kg. what price does walmart now sell them for tomorrow?

 

because walmart also sells products at the highest price possible for their market and system.

 

The price would still be $2.59. Walmart would either stop selling bananas until their costs aligned with the market or they would subsidize them.



#3145 Victoria Watcher

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Posted 09 August 2020 - 11:17 AM

they would never be willing to lose $100,000 per kg. of bananas.  and if they stopped selling them then a competitor would sell them for $100,002.69.



#3146 Mike K.

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Posted 09 August 2020 - 11:52 AM

Sure but if the Government gave every developer $100k per unit back would they drop prices? Of course not, the market dictates pricing and everyone sells for the most they can get.


Of course. Why wait a year to sell if you can get your money out in eight months?

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#3147 spanky123

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Posted 09 August 2020 - 03:16 PM

New supply each year represents a very small % of the overall inventory. As a result, it has very little impact on overall pricing.



#3148 Mike K.

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Posted 09 August 2020 - 06:20 PM

New supply is a price leader, despite being in such small supply. A 25-year-old condo would not sell for 390k if the brand new one wasn’t $430k.

Due to the open market, if a developer could sell the brand new one for $380k he would in a heartbeat.
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