We’re in the middle of a burgeoning real estate market at present. In Greater Vancouver, the inventory of single-family homes is becoming scarce, as more and more condos go up and the number of hopeful house buyers continues to grow. Unfortunately for buyers in these areas, that means being stuck in a seller’s market, which leads to offers over asking prices, and even bidding wars.
During real estate’s peak season in October 2015, 3,646 detached houses, townhouses, and condos changed hands in Greater Vancouver, up 36% from the 10-year average. Total listings for the range of existing housing types fell 30% from October 2014 (The Globe and Mail).
As demand for homes outstrips supply, prices continue to rise. According to the Home Price Index (HPI), the benchmark price for a detached home in Metro Vancouver rose 20% compared to October 2014, to reach almost $1.2 million for detached houses sold on the Multiple Listing Service. October 2015 condo prices averaged $494,689 in Greater Vancouver, widening the price gap between detached properties by $705,311 (Real Estate Board of Greater Vancouver).
With high housing demand and limited supply, bidding wars, unfortunately, are here to stay so here’s some things buyers are doing to get their offers accepted in a hot sellers market:
- Buyers are writing offers with no subjects. No subject to financing, inspection, reviewing documents etc.
- Buyers are paying over and above the listed price. A house in East Vancouver recently sold for $567,000 over the asking price.
- Buyers are arranging home inspections to be done at open houses.
- Buyers are prepared to pay cash or accept private financing just encase their banks don’t approve their offer.
Note: Before implementing any of the above strategies when purchasing a home, speak to a Licensed Realtor, Real Estate Lawyer and Mortgage Professional so that you are fully prepared with your options.
