Condo Buyers Competing Amidst Record Low Inventory
I’m writing this as I stumble my way out of an open house, beaten black and blue from flying elbows as buyers push and claw their way through a Thursday evening open house. An 800 square foot condo teasingly priced under $550,000 was jammed wall to wall with inventory starved buyers. Yep, the feeding frenzy of multiple offers is still alive and well for Vancouver condos, despite the snooze fest in the single family market.
Condo prices are hitting new highs, yet sellers refuse to sell. Inventory has officially hit record lows, and is down 21% from last year. New listings are also down. In fact, this past February experienced the fewest number of new listings over the past 12 years.
The purge of new listings and low inventory continues to crush the hopes and dreams of young first time buyers desperate to enter the market. But it’s never been sweeter for sellers, like shooting fish in a barrel.
Yep, multiple offers are hitting buyers where it hurts most. The more affordable the unit, the more likely it enters into multiple offers. In Vancouver, during January and February 2017, 43% of condos priced under $500,000 sold over asking price. In comparison, only 22% of condos priced above 1 million sold over asking.
With new listings becoming a scarcity, excessive multiple offers, and lofty mortgages flooding the market it appears it’s going to get worse before it gets better.