# Anyone seeing bidding wars in Vancouver?



## Causalien (Apr 4, 2009)

Out of curiosity I checked in on how much people are listing their houses near me in Vancouver expecting a drop i prices. Not only did the price not fall, but it went up about 20%. In lock step with our currency exchange rate.

At this point I am just speechless. I understand that MLS does not reflect the selling price but it should not be that far off. I've been hearing price drops in other cities especially in Alberta. So since I am on the other side of the world and can't confirm, anybody


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## Just a Guy (Mar 27, 2012)

Vancouver is always an anomaly...that being said, as your realtor to show you the "days on the market" information. My bet is the places not going down have been sitting a long time. People in vancouver can generally afford to sit and wait longer than in other cities...they are also in much deeper than other cities, and they have the supply and demand factor going for them.

Face it, would you rather live at the beach and watch the birds, or live in the Peg, watching the mosquitoes and freezing your butt? There are real reasons why some places are cheap to live.


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## Causalien (Apr 4, 2009)

Yeah but I always thought the anomaly was HAM. After our government cutoff immigration, I didn't think the house price is currency locked anymore. So are Americans investing in Vancouver now? Cause 20% is basically the usd cdn exchange rate.


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## JordoR (Aug 20, 2013)

I don't know if its bidding wars but I've seen many properties selling above asking, and not just on the 1-2m + homes. I see many homes listed in the 500-600k range (well apartments/townhomes) that are selling for 15-20k above asking. I've seen some as high as 50k above.
This kind of information won't show up on MLS, but a realtor friend of mine set me up with his website service that shows additional information. (Days on market, sale price, etc.)


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## MoreMiles (Apr 20, 2011)

Chinese RMB is worth more with weak CAD. The Chinese newspaper magazines have been confirming this phenomenon. Chinese buyers want to buy hard assets. With weaker Cad, it's as if those houses are on sale, 20% off!


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## Causalien (Apr 4, 2009)

Hmm, but there's a limit of 30k transfer per year. So the existing HAM base couldn't have possibly funnelled new money in to buy.


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## Charlie (May 20, 2011)

There's been an uptick of sales in my Vancouver neighbourhood at prices higher than their usual absurdly high levels.

Not Chinese money. Mainly lawyers and other undesireables. Not sure the reason. I can't believe it's sustainable.


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## Causalien (Apr 4, 2009)

Facepalm. I was afraid that it's the locals bidding it up.


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## steve41 (Apr 18, 2009)

I have noticed in the last 6 plus months that quite a few West Van homes are sporting 'for rent' signs. This is a new thing for West Van. I have no idea what this signifies.


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## kcowan (Jul 1, 2010)

There is a very active rental market in Vancouver. We rent our penthouse every season for 6 months. We use Remax. Longer term rentals are often people moving here who are shopping around/waiting for a correction.


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## steve41 (Apr 18, 2009)

I am talking about high-end detached housing, not condos.


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## kcowan (Jul 1, 2010)

Check the rental market. High end detached homes are readily available. Often rented to movie producers/actors. Also potential immigrants who want to experience the life before making a financial investment. We get $4000/mo but agents have told us that $7000 is certainly within reach. Very active segment.


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## steve41 (Apr 18, 2009)

I am talking about actual signs. They are uncommon to see in the neighborhood. What it signifies, beats me.


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## Causalien (Apr 4, 2009)

steve41 said:


> I am talking about actual signs. They are uncommon to see in the neighborhood. What it signifies, beats me.


Any idea where I can find average rental rate in different parts of vancouver?


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## Berubeland (Sep 6, 2009)

The signs are up and you're seeing a lot of them because inventory is rising. The houses are not renting and so there is a surplus. Things like putting up signs take a surprising amount of time the agent needs to assign a contractor, then the guy needs to schedule and go out, etc. So if the houses are renting fast, the sign doesn't even have time to go up or isn't even necessary. Now if the houses are not renting there is plenty of time, the client will push the realtor to put up a sign, and the sign will be put up... and not come down until the place is rented.


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## sags (May 15, 2010)

With prices rising so quickly as a % of the home price...........it must make it difficult for people to "move up" in housing.

The price gap between entry level homes and higher level homes would grow larger and larger.............wouldn't it.


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## Causalien (Apr 4, 2009)

sags said:


> With prices rising so quickly as a % of the home price...........it must make it difficult for people to "move up" in housing.
> 
> The price gap between entry level homes and higher level homes would grow larger and larger.............wouldn't it.


Detached up 20%
33' small footprint detached up 10%
I didn't bother checking the rest. This is just listing price alone. They are selling above asking now.
Looks like HAM is still in play due to black market money transfers.


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## MoreMiles (Apr 20, 2011)

Chinese government is cracking down on corruption. So my guess is that those monies are leaving China rapidly in the last year so they cannot be caught. With interest rate so low, Canadian houses get bought. Houses that were $700k just a few years ago are going at $1.8m. Who can take out mortgage for more than $1 million? So those are mostly bought in cash with no need of mortgage. It looks like it is still going on so the house price here may rise to at par with Asian markets eventually.


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## Causalien (Apr 4, 2009)

My guess is that China will have to unpeg the yuan soon and house price will float with cad yuan rate.


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