With the COVID-19 pandemic, there was a boom in real estate with many offers over asking sale prices. This was the trend for detached homes in North and East Vancouver ranging in price between $1.5 and $2 million. In the Fraser Valley area, prices were lower but the trend was the same. This trend is now seemingly moving into houses that are at high prices, particularly since mid-February 2021. Statistics show one house going for sale $700,000 over the asking price and another going $1.6 million higher.
In a market where demand is high and there are multiple offers on properties, real estate agents and sellers are being challenged to determine asking prices based on recent sales on similar properties. This leads to asking prices that are higher by even a hundred of thousands of dollars.
At the start of the real estate boom in 2014 to 2018, a home in Shaughnessy sold for $2 million over the asking price. Later in June 2015, a home in West Vancouver that sold for $1.1 million over the asking price. These were just one off sales but after they word sold they set higher price comparable rates and margins for sales of other houses in their respective areas.
Real estate agents note that the low interest rates along with “cheap money” are currently driving sales prices. Current homeowners are benefiting by refinancing their properties and cashing in on those lower rates. First time home buyers are benefiting from the low interest rates but many are at a disadvantage when it comes to competing sales with this high oversells. Since they can only bid in smaller increments, they are at risk for losing out on a sale easily by someone with a higher spending power.
Solution for Home Buyers with Limited Income
If you are searching for your home but are finding it hard to compete with the high over-asking on the market we have a solution for you. Here at SilverBeam Homes, we offer you the opportunity to build the home you can afford from the ground up. We have a team of professionals every step of the way. Contact us, so we can see how we can help you make your dream of owning a home, a reality today.