Cory Raven | 604-220-9399

 
This was in the Globe and Mail today.  Arg!  I know people think multiple offers are a great thing and Realtors must love them, but a balanced market is much healthier and sustainable
 
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JENNIFER VAN EVRA

Special to The Globe and Mail

When Vancouver real estate agent Terry Flahiff listed the Kitsilano bungalow a few weeks ago, he knew it would generate interest. Located on the city's west side, the 1926 home featured hardwood floors, a large renovated kitchen, a bright two-bedroom basement suite, a white picket fence and a tree swing.

Sure, the yard was small, the view out the back was a giant condo complex, the bedrooms were tiny - the master was slightly more than 100 square feet - and it was just half a block off one of the city's busiest thoroughfares. Still, those shortcomings were quickly forgiven by the dozens of prospective buyers who streamed through the first open house saying, "Honey, I love it" and trying to imagine life without closets.

Five days later, seven agents lined up to make their offers. The asking price was $959,000, but because of the competition, they knew they had to push higher. Only two bids came in at less than $1- million, and in the end, the home sold for a staggering $1.142-million - more than $180,000 over the original price tag.

"My clients were hoping to get around $1-million or maybe $1.05-million," Mr. Flahiff says. "I think they were very happy."

As neighbours south of the border continue to pay the price for their housing market collapse, it seems that home buyers in Vancouver have forgotten the global economic downturn like it was yesterday's news - and that rush of optimism is fuelling a return to bidding wars.

Earlier this week on the Eastside, a partly updated Commercial Drive bungalow with a two-bedroom suite and a new garage and studio drew 10 offers - most of them with no inspections, despite the fact that the 1926 house needed a new roof, electrical upgrades and drain tile work, and had an old oil tank buried in the back yard. The first showing was Thursday last week, and on Sunday it sold for $113,000 over the asking price.

The same dizzying chain of events is being repeated around the city, where homes are selling in a matter of days, some for prices that sellers could not have imagined just a few months earlier. To make matters worse, many are being bought outright, because an offer that includes subjects (that is, the buyers want a few days to get an inspection or appraisal, finalize financing and so on) just can't compete.

According to veteran agent Rod MacKay, prospective buyers who have been waiting in the wings for the past year feel more confident about the economy and want to capitalize on the record low mortgage rates and reduced home prices before they drift outside their financial grasp. And because of the low mortgage rates, home ownership is now within reach for thousands of first-time buyers who had been priced out of the market, adding to the pressure at the bottom. Meanwhile, sellers aren't jumping in nearly as quickly: A third fewer houses were on the market this August than a year earlier, giving buyers a tough lesson in the laws of supply and demand.

"Prices have moved up 10 per cent in the last six months, so people are worried that if they wait for the perfect house, it won't be affordable," says Mr. MacKay, whose client offered $62,000 over the asking price on the Commercial Drive home, but landed near the bottom of the pack because her offer was contingent on getting two weekdays to finalize the financing. "So if someone is offering on a house that's $950,000, but they can afford $1.1-million, they think they'd better pay it now because that house will cost $1.75-million before they know it."

Still, experts say that even though Vancouver posted record sales in August - a whopping 117 per cent over the previous year - the overheated market is not likely to last. The backlog of buyers will purchase homes, and more sellers will enter the market, marking a return to a more balanced situation.

"The volatility has definitely been very surprising. We expected to see improvement from the recessionary lows, but we didn't see it rising this quickly," says Brian Yu, an economist with the British Columbia Real Estate Association, pointing to a steep decline in mortgage rates and low inventory as the central reasons behind the speedy return to a red-hot market.

"But the Vancouver numbers are showing some signs of plateauing, so the markets are probably going to stabilize over the next while," he says. "They can't increase at this rate forever."

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I have just uploaded a copy of this month's Informed Buyer and Seller Newsletter
 
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Today's Real Deal is a brand new listing at Concord Pacific's SPECTRUM.  Excellent location close to skytrain, Yaltetown, Chinatown and more.
 
 
 
 
This Real Deal, as with most of them is not my listing.  I scour the entire MLS looking for the best deals for my clients and when I find one that really stands out as good value I share it here on Real Deals.
 
EOE.
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Best priced suite on Beach Avenue in the West End
 
 
 
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Today's Real Deal is a 1250 square foot 2 bedroom on Jervis in the Westend.
 
Today, the price was dropped $20,000 to $539,000
 
Looks like a great price for a 2 bedroom in such a great area with 2 parking stalls.
 
 
 
 
 
This listing, along with most Real Deals is not my listing.  On my Real Deal's I scour the entire MLS looking for the best deals for my clients and post Real Deals here as often as I see them
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5 year - Fixed Rates
  
Fixed rate 5 year term mortgages have increased about 1/2% in the past week, this is due to yield changes in the bond market. The lender's best 5 year fixed rate mortgage today The prime lending rate was announced today by the Bank of Canada to stay the same.
  
If you have a fixed mortgage above 5% and you qualify we may be able to switch your mortgage to a new lender and save you money over and above your penalty, Call us for a free 15 minute mortgage analysis and we will run the numbers for you and let you know if we can save you money.
  
Adjustable Rate Mortgages
  
The lender's prime rate is still 2.25%, some of our clients still have prime minus 1% and have a 1.25% mortgage rate. The best Adjustable rate mortgage today is prime + .4% = 2.65% See BOC announcement
  
Should we lock in our ARM?
Having an ARM Adjustable Rate Mortgage when rates are rising can be stressful. There is no crystal ball to look at to decide if you should lock in or not. I believe there are 2 factors to think about:
  
1) Comfort level, If the stress of floating is too much then forget about the math and guessing where rates are going and lock in to a 5 year fixed rate mortgage, the rates are still very low and you can sleep at night and not worry anymore. Just call us and we will help you lock in your mortgage.
  
2) What do you THINK is going to happen to rates: Based on the report from the BOC (see link above) they seem to think they will keep the prime rate low until 2010, Quote from BOC "
Bank of Canada maintains overnight rate target at 1/4 per cent and reiterates conditional commitment to hold current policy rate until the end of the second quarter of 2010
If you believe the BOC then you can benefit from low rates for another year and THEN lock in to a fixed rate.
  
If you have any questions, we are here to help, cheers
  
Lance Cook
President

 

CBM Canada's Best Mortgage Corp.
#101-3960 Quadra Street
Victoria, B.C.   V8X 4A3   Canada

Phone: 250-391-7678 (Ext.105)
Direct line: (250) 391-7833
Fax: 250-391-7679
Toll-Free Phone: 1-877-593-7738 (Ext.105)
Toll-Free Fax: 1-877-651-7739
Email:
lance@lancecook.com
Web: www.lancecook.com
  
We Shop - You Save™
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Today's Real Deal is a 2 bedroom  in Concord Pacific at Aqua @ The Park
 
Price has just been reduced!
 
 
 
 
This listing, as with most of the Raven's Real Deal, is not my listing.  The Real Deal service is me scouring the MLS for what look to be good deals on behalf of my clients and potential clients.  Enjoy!
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Today's Real Deal is a 4 bedroom FREEHOLD townhouse in Champlain Heights.  Rentals not allowed.  This seems like an excellent buy for a family looking to get into the market.
 
 
 
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Please excuse the mess while I upgrade my website.  In the meantime, you may access all my blog posts by clicking here.
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Cory Raven
Telephone:604-220-9399
Cory Raven - Managing Broker
RE/MAX Select Realty
4806 Main Street
Vancouver, BC
V5V 3R8