WATCH: In East Vancouver a home has sold for a half-million dollars over the asking price. Those in the business say it’s a new record. Asa Rehman reports.
The booming housing market in East Vancouver has a new benchmark.
A 2,100-square-foot home on E. 26th Ave. just west of Main St. was listed for $1.6 million dollars and sold for $2.165 million, more than a half-million dollars over asking price.
The 35 per cent difference is new territory for Vancouver’s red-hot real estate market.
Bidding wars are nothing new for Metro Vancouver residents, and in such a competitive market determining an enticing price becomes part of the strategy.
“What you really want is to get lots and lots of bidders,” says Thomas Davidoff of UBC’s Sauder School of Business. “The listing price indicates something, but it’s probably not going to be the ultimate sales price. So it may be a wise strategy to list considerably below where you think the property is going to sell.”
The growing demand in Vancouver–to the tune of $567,000 over asking price- is pricing some people out of the market.
For many, renting may be the only option if they hope to stay in the city.
“Whether owning a home in Vancouver is the right asset for your portfolio is a complicated question,” says Davidoff. “I think that people have the belief that over time–20, 30 years from now–Vancouver may be considerably more expensive, inflation-adjusted, than it is today and that might rationalize these prices.”
WATCH: How stupid is Vancouver’s real estate market?
-with files from Asa Rehman