Well, numbers of sales are certainly well up on the NShore compared with last year. Median prices up in all categories in NVan and for detached in WVan – t/homes and apartments here are more erratic (small sample size). What does this really mean? Obviously the demand for all categories continues to be strong. As we go deeper into May, we are seeing that continue and many Realtors report multiple offers with North Van seeing a higher proportion of these. My last two deals (a purchase and a sale) were in this category. As all Realtors will tell you we know which side of these transactions we prefer to be on!
Let’s talk about competing offers and specifically the phenomenon of many buyers paying over the asking price. There are numerous reasons for this. We look first at the listing price, agreed upon by the seller and their Realtor. Is this truly representative of the likely market value? Or is it significantly below that figure? In a nutshell, with the strong demand for homes (and likely a lower than average inventory) this will invariably lead to one buyer out of the group of possible buyers, paying, say 5%, 10% or even more over the asking price. A recent situation on the North Shore, saw a figure of over $300,000 being paid for a home listed below the $1,000,000 level. I was asked by a friend/ past client if this was a record. My answer was a record for what? The highest discrepancy between an asking and a sale price would be a record but how meaningful is this concept? Does it denote a better home than the one across the street that sold for, say $1,250,000 with a listing price of $1,275,000? Impossible to say. The saddest outcome of a 14 offer competition is the 13 wannabe buyers who are disappointed/ devastated(?) by losing out on what they may feel to be a dream home. You’ll notice I had not even mentioned the 13 “bridesmaid” Realtors ;).