B.C. real estate: Bidding wars again hitting high-end housing market - Vancouver Sun | Canada News Media
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B.C. real estate: Bidding wars again hitting high-end housing market – Vancouver Sun

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One recent sale went more than $1.6 million over the asking price, while another went $700,000 higher.

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When the COVID-19 real estate boom started, multiple offers and over-asking sale prices were mostly happening for detached homes in the $1.5 million to $2 million range in parts of East Vancouver and North Vancouver, and lower-prices houses in the Fraser Valley.

Now, there are signs of this moving into more expensive housing. In particular, there were two eye-popping sales in mid-February, one that went for over $700,000 the asking price, and the other for more than $1.6 million higher than the asking price.

In a fast-escalating market with heated demand and multiple offers, it can be challenging for sellers and real estate agents to determine an asking price by relying on a property’s assessment or recent sales of a similar property. This can lead to sale prices that are hundreds of thousands of dollars over the asking price.

For example, at the beginning of the real estate boom between 2014 to 2018, a home in Shaughnessy sold for $2 million over the asking price of $5.99 million in March 2015. Later, in June 2015, there was a sale of a home in West Vancouver that caught attention for selling for $1.1 million over the asking price of $2.98 million. These were one-off sales, but they help set a higher comparable price or margin for next sales.

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Real estate agents say “cheap money” or very low interest rates are spurring sales and prices. Existing homeowners are refinancing at low rates and taking that cash to make another property investment. First time buyers or those with less home equity also benefit from low interest rates, but they are at a disadvantage when it comes to competing for sales that involve multiple and over asking price offers because they have to bid in smaller increments and take fewer risks such as forgoing a house inspection before the sale closes.

Vancouver real estate agent Muzda Stenner described the recent scene at a West Vancouver detached home on Queens Avenue that was on sale for $2.877 million.

“It was almost like a garage sale (with) cars lined up on the street,” said Stenner. “Even with COVID, and people wearing masks, it was a full house, and people were trying to get in.”

The home is assessed at $2.69 million. She helped her client bid “$3 million, with subjects” to buy the home. “And it was like, ‘no, no, no.’ I had one of the lowest bids.”

With some 19 other offers, the home went under contract in mid-February to be sold for $3.6 million or $723,000 over the asking price.

“It had great potential, but it was a very small house,” said Stenner of the 3,000-square-foot, two-storey home on a 12,000-square foot lot with ocean views that was built in 1957.

On the West side, a 4,000-square-foot, five bedroom, rancher-style home on West 41st Avenue just west of Granville Street went under contract in mid-February to be sold for $5.66 million.

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The property, which is assessed at $3.95 million got one offer at the asking price of $3.98 million, but three other offers that were all above that, according to the listing agent, Sarina Han. The sale price was $1.68 million over the asking price.

Han said the property has RS-3 zoning, which allows for a single-family home in keeping with the design and density of the surrounding area, even though it is on busy 41st Street near a major intersection at Granville Street.

The condo market, which has been described as more balanced in pricing because there is more supply of listings and because more buyers were seeking larger homes with outdoor space to cope with the pandemic, is also seeing some of this frenzied activity, according to some real estate agents.

Ian Watt said he was juggling two multiple offer situations for potential condo buyers one recent evening. One condo they were interested in got five offers and the other had 14 of them. It was a one-bedroom, 965-square-foot condo in Kits that was asking $899,999, but sold for $1.107 million or $207,001 over asking price.

“I lost out with my buyers because someone totally overpaid,” said Watt.

jlee-young@postmedia.com

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Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

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TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Homelessness: Tiny home village to open next week in Halifax suburb

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HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

The Canadian Press. All rights reserved.

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Here are some facts about British Columbia’s housing market

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Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press. All rights reserved.

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