Real Estate

Vancouver housing bubble?

  • Last Updated:
  • Aug 19th, 2017 2:51 pm
Tags:
None
Deal Fanatic
Jan 27, 2006
6144 posts
1523 upvotes
Vancouver, BC
Speedy1 wrote:
Mar 18th, 2017 4:26 pm
The segment of the detached market that I track is hitting an all time high. Multiple offers, some of which are subject free.

It started about 4 weeks ago. Not sure if it will continue or it's just a short term blip.
It would be interesting to see the source of the subject-free multiple offers - ie. locals or offshore.
Sr. Member
Jan 12, 2008
772 posts
90 upvotes
I'm starting to get disheartened by this aggressive market. I am looking to buy, keep getting outbid even if i put a fair bit over asking (no subjects if i've read the strata documents). I also went to 3 open houses today, two already had accepted offers (Why even have the open house, waste of time), the third had an offer already and the realtor would not even wait 30 minutes for us to put in an offer, acted as if he wanted a signed offer right there before the end of the open house. I mean god damn, these were listed on Tuesday! And they don't even last to the open house. Smiling Face With Horns
Deal Fanatic
Jan 27, 2006
6144 posts
1523 upvotes
Vancouver, BC
thefeebster wrote:
Mar 19th, 2017 12:35 am
I'm starting to get disheartened by this aggressive market. I am looking to buy, keep getting outbid even if i put a fair bit over asking (no subjects if i've read the strata documents). I also went to 3 open houses today, two already had accepted offers (Why even have the open house, waste of time), the third had an offer already and the realtor would not even wait 30 minutes for us to put in an offer, acted as if he wanted a signed offer right there before the end of the open house. I mean god damn, these were listed on Tuesday! And they don't even last to the open house. Smiling Face With Horns
Open houses may be part of the contract with the owner. It sounds like the owners may be very motivated to sell so they may have stupidly accepted the first offer that came around rather than waiting a day or two after the open house to see what shakes out. Motivated sellers might be a good deal for the buyer (in terms of price) or the seller if they had 'reasons' they didn't disclose for the sale - ie get out of dodge before someone finds out.
Deal Addict
Jun 29, 2007
3574 posts
736 upvotes
thefeebster wrote:
Mar 19th, 2017 12:35 am
I'm starting to get disheartened by this aggressive market. I am looking to buy, keep getting outbid even if i put a fair bit over asking (no subjects if i've read the strata documents). I also went to 3 open houses today, two already had accepted offers (Why even have the open house, waste of time), the third had an offer already and the realtor would not even wait 30 minutes for us to put in an offer, acted as if he wanted a signed offer right there before the end of the open house. I mean god damn, these were listed on Tuesday! And they don't even last to the open house. Smiling Face With Horns
I am not into the condo market but from what I have read, the condo market is quite hot right now. In fact, it never really cooled.

In the detached market that I am into, one seller accepted an offer before holding an open house (think it was advertised and then cancelled, if I remember correctly). Another house had an accepted offer but still held an open house the following weekend. Accepted offer eventually removed subjects and went firm. Two houses I track sold via cash offer (i.e. subject free). One buyer had their inspector there inspecting the house while I was attending the open house. That buyer was local.

Another house on my list was on the market for about 3 months but then sold last week for over asking.

I wonder what's causing this jump all of a sudden. Just the usual spring market madness?

The jump was so rapid, it caught me off guard and I "under" offered on a few houses.
Deal Addict
Jun 20, 2011
1337 posts
362 upvotes
VANCOUVER
Speedy1 wrote:
Mar 19th, 2017 2:45 am
I am not into the condo market but from what I have read, the condo market is quite hot right now. In fact, it never really cooled.

In the detached market that I am into, one seller accepted an offer before holding an open house (think it was advertised and then cancelled, if I remember correctly). Another house had an accepted offer but still held an open house the following weekend. Accepted offer eventually removed subjects and went firm. Two houses I track sold via cash offer (i.e. subject free). One buyer had their inspector there inspecting the house while I was attending the open house. That buyer was local.

Another house on my list was on the market for about 3 months but then sold last week for over asking.

I wonder what's causing this jump all of a sudden. Just the usual spring market madness?

The jump was so rapid, it caught me off guard and I "under" offered on a few houses.
From what I've seen and whispers around the industry, it was a "late" spring this year. Things are heating up.
Deal Addict
Oct 7, 2007
2783 posts
542 upvotes
thefeebster wrote:
Mar 19th, 2017 12:35 am
I'm starting to get disheartened by this aggressive market. I am looking to buy, keep getting outbid even if i put a fair bit over asking (no subjects if i've read the strata documents). I also went to 3 open houses today, two already had accepted offers (Why even have the open house, waste of time), the third had an offer already and the realtor would not even wait 30 minutes for us to put in an offer, acted as if he wanted a signed offer right there before the end of the open house. I mean god damn, these were listed on Tuesday! And they don't even last to the open house. Smiling Face With Horns
Which municipality were these houses in?
Jr. Member
Jan 13, 2017
148 posts
82 upvotes
I think so too, very late spring for GVA due to snow,
very early spring for GTA due to 0 snow in Jan/Feb

DDHLeigh wrote:
Mar 19th, 2017 3:34 am
From what I've seen and whispers around the industry, it was a "late" spring this year. Things are heating up.
Sr. Member
Jan 12, 2008
772 posts
90 upvotes
craftsman wrote:
Mar 19th, 2017 12:48 am
Open houses may be part of the contract with the owner. It sounds like the owners may be very motivated to sell so they may have stupidly accepted the first offer that came around rather than waiting a day or two after the open house to see what shakes out. Motivated sellers might be a good deal for the buyer (in terms of price) or the seller if they had 'reasons' they didn't disclose for the sale - ie get out of dodge before someone finds out.
Ahhh, didn't think about the contract part. But a little headsup on MLS would have been nice. We went out of our way to see the Richmond one, wasted 45 minutes on that detour, when we could have been seeing something else.

The one i really actually wanted and was ready to put in an offer in over asking (until the selling realtor told us there was an accepted offer) did not show that well. Maybe that's why they thought they should take the offer? The walls needed work, was a mess inside, smelled a little. But the layout was great.
Speedy1 wrote:
Mar 19th, 2017 2:45 am
I am not into the condo market but from what I have read, the condo market is quite hot right now. In fact, it never really cooled.

I wonder what's causing this jump all of a sudden. Just the usual spring market madness?

The jump was so rapid, it caught me off guard and I "under" offered on a few houses.
Yeah, its super hot. I am mainly looking at townhouses, but condos as well if they are spacious enough.

I feel there has been a rapid jump as well, and i have no idea why.

One condo i put an offer into, over ask, no subjects. The penthouse version of the same layout went for $421k (under asking), sold last week of Jan 2017. The condo i put the offer on was one level below, same view, same layout, not even fully renovated only laminate updated etc. Went for $466k last week March 2017. Like WTF is happening... quite literally one month apart and it increased $45k?
choclover wrote:
Mar 19th, 2017 10:21 am
Which municipality were these houses in?
The ones i mentioned this weekend were Burnaby and Richmond.
Deal Fanatic
Jan 27, 2006
6144 posts
1523 upvotes
Vancouver, BC
thefeebster wrote:
Mar 19th, 2017 2:56 pm
Ahhh, didn't think about the contract part. But a little headsup on MLS would have been nice. We went out of our way to see the Richmond one, wasted 45 minutes on that detour, when we could have been seeing something else.

The one i really actually wanted and was ready to put in an offer in over asking (until the selling realtor told us there was an accepted offer) did not show that well. Maybe that's why they thought they should take the offer? The walls needed work, was a mess inside, smelled a little. But the layout was great.
Yep you have to remember that by the time the open house came around, what you saw was the best they could do in the time and money they wanted to put into it. In other words, you would need to sink a few bucks into it to get the rest of the smell out and who knows what's behind those walls that needed work...

Another thing I thought of for the open houses is that realtors also use open houses to drum up business for themselves especially if they start talking up the home buyers to see if they are selling or thinking of selling. In the sales business, you always have to keep looking for the next deal unless of course you are too busy to care!
Deal Addict
User avatar
Sep 8, 2007
4569 posts
2550 upvotes
Way Out of GTA
thefeebster wrote:
Mar 19th, 2017 2:56 pm
Ahhh, didn't think about the contract part. But a little headsup on MLS would have been nice. We went out of our way to see the Richmond one, wasted 45 minutes on that detour, when we could have been seeing something else.

The one i really actually wanted and was ready to put in an offer in over asking (until the selling realtor told us there was an accepted offer) did not show that well. Maybe that's why they thought they should take the offer? The walls needed work, was a mess inside, smelled a little. But the layout was great.

Yeah, its super hot. I am mainly looking at townhouses, but condos as well if they are spacious enough.

I feel there has been a rapid jump as well, and i have no idea why.

One condo i put an offer into, over ask, no subjects. The penthouse version of the same layout went for $421k (under asking), sold last week of Jan 2017. The condo i put the offer on was one level below, same view, same layout, not even fully renovated only laminate updated etc. Went for $466k last week March 2017. Like WTF is happening... quite literally one month apart and it increased $45k?

The ones i mentioned this weekend were Burnaby and Richmond.
Just a suggestion if you are looking to buy in such a hot market. You shouldn't be waiting until an open house to see something you are interested in...you should be booking to see it as soon as it hits MLS and the earliest possible viewing. Your agent should be contacting you and booking for you. Waiting until it hits the realtor public website is a 1 day delay, and for me that's too much of a delay. I want to be the first in to see a place the day it is listed whenever possible. Then YOU can be the buyer with the accepted offer prior to the open house.

It's an aggressive market, you have to be aggressive and decisive to get what you want...and even that may not be enough but will tilt things in your favour.
Deal Addict
Nov 26, 2005
3066 posts
233 upvotes
cartfan123 wrote:
Mar 19th, 2017 5:54 pm
Just a suggestion if you are looking to buy in such a hot market. You shouldn't be waiting until an open house to see something you are interested in...you should be booking to see it as soon as it hits MLS and the earliest possible viewing. Your agent should be contacting you and booking for you. Waiting until it hits the realtor public website is a 1 day delay, and for me that's too much of a delay. I want to be the first in to see a place the day it is listed whenever possible. Then YOU can be the buyer with the accepted offer prior to the open house.

It's an aggressive market, you have to be aggressive and decisive to get what you want...and even that may not be enough but will tilt things in your favour.
yea thats what agent do, get him/her to get a private viewing session for you before open house. if you think it is right, put in offer expiring before open house time to force seller to take it or leave it.
Newbie
Nov 6, 2016
4 posts
ccyk wrote:
Mar 19th, 2017 7:07 pm
yea thats what agent do, get him/her to get a private viewing session for you before open house. if you think it is right, put in offer expiring before open house time to force seller to take it or leave it.
I agree with ccyk and others who've suggested seeing the property before the open house, if possible, and submitting an early offer. Also, if you can, it will help even more if you're flexible with your dates. That's what clinched our new place for us during the crazy market last spring--We were able to move any time the seller wanted because we hadn't sold our place yet. So even though we offered $80,000 over asking price with no subjects, in the end, flexibility is what won it for us, as the other buyers had specific dates. So the more flexible you can be, the better, especially in this market. I know how frustrating it can be though. Talk about feeling rushed!!

I was on both sides of the buying and selling frenzy last year, so I know how surreal it is. And it's carried over into this year.

A little snapshot of my experience last year:

1) Bought first (Cloverdale): After looking for 2 years, we finally found the right place last March. We purchased a 2500 sf, 4 bedroom, 4 bathroom townhouse in Cloverdale with a finished basement, double side-by-side garage and large backyard. We were coming from Vancouver and knew the Cloverdale property was listed under market value compared to the comps, so we knew it would go for substantially more. Approximately 100 people attended the open houses, and we ended up being 1 of 6 offers. We offered $80,000 over asking price, which was still a good value, strangely enough. As I mentioned above, even at that much over list, it was our flexible closing dates that clinched the deal.

2) Sold after (Vancouver): We then listed our condo in Vancouver 3 weeks later. In those 3 weeks, comps had increased in our area by $25,000, so we listed in line with them. Even then, we were just hoping to get our list price, and we weren't sure we would. We listed on a Monday, had a 1-hour "sneak peek" on Thursday, did an open house on Saturday and Sunday and took offers on Monday. After the sneak peek (first day of viewings) we received a subject-free offer for $50K over list. We turned it down to allow everyone an equal shot, and at least 220 people came to the open houses a couple of days later. On Monday, we received 20 offers, with the winning offer being subject-free and for more than $240,000 over list price. Sure, our condo was completely renovated and in a great area, but we would never have paid that much for it. But such was the market at the time, I suppose...

3) Before we moved into our place in Cloverdale 3 months later, several other units were listed and sold in the complex. They were now going for $55K more than we paid, with the same specs or less. Again, it was a crazy market!
Last edited by MichiChan on Mar 20th, 2017 1:13 am, edited 1 time in total.
Newbie
Nov 6, 2016
4 posts
Another tip:

If your realtor sends you those once-daily automatic e-mails when new listings come up, you don't have to wait until they e-mail you new ones in the morning.

Just open a previous e-mail of new listings your realtor has sent you and refresh it. The new listings will show at the top, before your realtor has even had the chance to send you that day's e-mail.

That way you can contact your realtor first thing in the morning to book viewings of the newest listings:)
Deal Addict
Jun 29, 2007
3574 posts
736 upvotes
Also consider what will happen with real estate prices if NDP vs Liberals get elected.

According to current polls, it's more or less a coin toss right now.
Sr. Member
Jan 14, 2009
781 posts
250 upvotes
Vancouver, BC
Speedy1 wrote:
Mar 20th, 2017 1:39 am
Also consider what will happen with real estate prices if NDP vs Liberals get elected.

According to current polls, it's more or less a coin toss right now.
For those who has not lived under a NDP government in BC.

NDP = anti-business policies, slow economy, higher unemployment = lower real estate volume & prices.

Top