Hot Edmonton real estate market leading to bidding wars
EDMONTON — Spring is a traditionally busier time for the real esate market, but a new trend is emerging.
Homes that have hardly been on the market are being quickly snapped up by over-bidding buyers.
It was the perfect set-up for Sean Pateman, who was looking to sell his Lewis Estates home. After being on the market for only one day, it had already garnered five showings.
“I knew the market was hot right now,” he said. “Figure, I’d throw it out there and see what happens.”
His house became hot property, with one buyer willing to pay $7,500 over the listed price.
There are several factors driving the real estate market—the economy, in-migration and low interest rates. The last time Edmonton saw something like this was about seven years ago.
“We’re not seeing so much property selling $20 or $30,000 over list price like we were seeing in 2007,” said Jamie Savage, a realtor with Remax.
“The competition is there as far as two, three, four offers at once on a property that’s been on the market for less than a week.”
Location plays a role in the demand. Inner city neighbourhoods have lower price points, something that attracts buyers. Still, Savage notes not every home in every neighbourhood will sell quite as quickly as Pateman’s did.
“If the house has been fixed up, been renovated and is priced within the realm of reason, doesn’t even have to be priced aggressively — I think it’s going to attract a lot of attention,” said Savage.
As for Pateman—he has 60 days to vacate his current residence and find a new home. He said he’s hoping the new month will bring new listings. Considering his luck as a seller, he realizes he might have different luck as a buyer and he might have to pay a bit more.
“If it comes down to it for the right house, absolutely,” he said.
With files from Vinesh Pratap, Global News
© Shaw Media, 2014