Let's put this simply: it's insane.
But you already knew that. Amid the ludicrous sale prices of houses going over asking, and your REALTOR explaining that everything has multiple offers, you are already well aware of what's going on in Vancouver.
From the numbers side of things:
Normally, you walk into Tim Horton's and order the Chocolate Dip. One of a dozen they have sitting there, gleaming, waiting for you to make today a 'cheat day'.
Ahhh but today...today's different. Today, there are only three Chocolate Dips left. Three left, and seven people in front of you. Simple odds tell you that you still have a good shot, given Tim Horton's variety of doughnuts. You hear some whispering, including some valuable information from the cashier that somehow, six of the seven people in front of you also want the Chocolate Dip! Well, you're committed now, and also, just out sheer human nature, your desire to want what you can't have kicks in.
Suddenly, you're on your feet, and before you can stop yourself, you belt out excitedly: "I'll pay two dollars for that one dollar doughnut!" The line stops to look at you, embarrassed on your behalf. A few quiet moments go by, and then it happens...
...The woman three people in front of you, announces that she'll up your bid, and pay $2.50. So on and so forth, and when all has been said and done, someone from Starbucks across the street walks in and hands the cashier a crisp five dollar bill and walks away with the last Chocolate Dip. Can you say "winner"?
So wait, why am I reading about Tim Horton's economics when I clicked on this post to read about the real estate market?
Well, that's just it. That whole Tim Horton's analysis is out of left field, makes zero sense, and is completely ridiculous. In a normal market, 2/10 listed homes sell in a given month. In a normal market, you put an offer, negotiate, and proceed several steps before confirming if you want a home or not. This market is anything but normal. Right now, 7/10 listed homes sell in a given month. That's 3.5 times the normal rate. You don't negotiate, you don't proceed through steps. You take risks, and overpay. That's how the market is.
Here's the kicker, things aren't slowing down. However, you may still need to move. As an owner, if now's the time to sell, you're going to want to have an agent like myself who understands how to maximize your home's value. Buyers - it is important to have an adviser who can help navigate this market and ensure you end up in your dream home.
If you care to hear more from the perspective of an honest and hardworking REALTOR, I'd love to hear from you. Email me at firstname.lastname@example.org.
All the best,