Forget whatever illusions remain about affordable detached homes in Vancouver.
Nowadays, buyers are willing to pay more than $500,000 over the listed price of single-family homes.
A good example is 2930 West 28th Avenue.
Keller Williams Realty VanCentral listed the MacKenzie Heights area home on February 2, 2021 for $2,399,000.
The 80-year-old home with three bedrooms and four baths got a new owner after seven days on the market.
On February 9, a buyer picked up the two-storey home with a basement for $2,950,000.
The selling price was $551,000 over the listed price.
The transaction was tracked by Zealty.ca, a real-estate information site owned and operated by Holywell Properties.
According to the site, the sold price of 2930 West 28th Avenue was 23 percent more than its listed price.
B.C. Assessment placed the 2021 value of the property as of July 1, 2020 at $2,411,000.
The Straight regularly asks realtor David Hutchinson of Sutton Group-West Coast Realty about what’s happening in the market.
Hutchinson, who has been in the business for two decades, is often sought by media organizations for his observations and insights.
Interestingly, Hutchinson cites a recent deal in which a buyer also paid over $500,000 on top of the listed price.
RE/MAX Select Properties listed 3355 West 12th Avenue on February 6 for $1,988,000.
The small Kitsilano area home comes with four beds and two baths.
After five days, a buyer picked up the 76-year-old home.
On February 11, the property changed hands for $2,502,850.
This means that the purchase price was $514,850 more than the listed price.
Zealty.ca notes on its site that the sold price was 25.9 percent over its original asking price.
“Representing buyers ain't easy these days,” Hutchinson said.
The long-time realtor noted that buyers find properties that may not be ideal, but look like a “perfect deal”.
“We go see it, consider an offer, and then we realize it's going into multiple-offers,” Hutchinson said.
Buyers give it their best shot, often attaching no conditions to their offer, and then hope for the best.
“One buyer ultimately gets the home. The others are left dissappointed and back on the hunt,” Hutchinson said.
He also noted there are buyers who have been waiting from the sidelines, and ready to make a move once prices go down.
Unfortunately for them, the “bottom fell out, and the market spiraled in the other direction, which was up”.
“With selling prices of over a half-million dollars over asking, the days of any kind of dreamy affordability seem to be gone,” Hutchinson said.