What Makes a Hot Seller's Market?

(December 10, 2015, posted in Market Update)

The Vancouver Real Estate Market is once again setting records. Prices are up all over Metro Vancouver and it is not going unnoticed.  

This diagram explains how the Real Estate Board determines whether it is a Buyer's or a Seller's Market using stats from November 2015.

The number of homes bought divided by the number of homes available for sale gives us the percentage and anytime the percentage rises above 20%, we experience a Seller's market. In the 35%++ range that we are experiencing now is when we see the currently common situation of multiple bids on a property and well-priced properties selling in under a week on the market for over asking or list price.  

The lack of inventory compared to the demand from Buyers places the upward pressure on prices.

It is worth noting that despite the newspaper headlines, the average home price is not over $1M . Of all the residential properties sold this year 2015, the average price is under $800,000. 

However, I have personally represented many clients in this market where properties we are selling and buying have sold for in excess of 10% of asking. 

Some recent December 2015 examples are:
  • 2bed/1bath condo in North Van Westview area. Listed: $399,000 Sold: $438,000
  • 3bed/3bath townhouse in North Van Lower Lonsdale. Listed $799,000 Sold $891,000
  • 3bed/2.5bath duplex in North Van in Lower Lonsdale. Listed $929,000 Sold $1,105,000
  • 2bed/1bath rancher w/small studio laneway house in North Van Queensbury. Listed $1,197,000  Sold for $2,185,000.  ...nearly $1Million over ask. 
The rancher example is rather unusual and shocked everyone involved but it is an example of the kind of pressure the market is under right now. For every well-priced, good product on the market, there are approximately ten buyers who are interested. This is creating one of the most tense and exciting markets for Sellers that I have ever seen. 
On the flip side, it is creating one of the most stressful and exhausting market for Buyers who need to buy. 

Whether selling or buying, it is so important that you work with someone who understands the pressures of the market and the strategies required to sell for top dollar or win in multiples. 

Confidential and Complimentary Real Estate Consultations at your convenience: 778-386-0771