I work for the most part in East Vancouver and in in Port Coquitlam, and it is starting to really hit home how it's not just the price and location that makes the two markets so different - there are drastically different attitudes among the buyers in the two markets.
Think about these two examples I've encountered in the past week:
1. Vancouver - 103 year old home listed in East Vancouver. Located close to Commercial Drive (desirable) and East Hastings St (not so desirable). The house had been on the market for 6 days and my buyers wanted to go see it. The price was quite low for a detached home, but considering the low square footage and small lot size, it was right in the ballpark price-per-square-foot that older detached homes are selling for in the area. I took my buyers through and they liked it! I promptly called the listing agent to get some more info on the place and he informed me that the house was sold - not offer accepted...SOLD - with no subjects at about $100,000 over asking price.
2. Selling a brand new condo development (La Via) in Port Coquitlam and some potential buyers come through. They are a young couple looking to buy their first home, currently renting a tiny apartment with a baby on the way. They love the place! We've ticked off every box on their "need" list and most of the boxes on their "want" list; they're struggling to find things they don't like about the place. They inform us that they would like to keep looking and explore their options more.
So what's the difference between these two buyers' markets? What is it that makes Vancouver buyers pounce the second they find something they want and Poco buyers hum and haw for months over their ideal home? The answer is that Vancouver buyers have a sense of urgency; a fear that if they don't make a move on their dream home, someone else will snatch it up! That sense of urgency just isn't there in Port Coquitlam, or any of the suburbs of Vancouver, with the possible exception of Burnaby (proximity effect maybe?)
The question, then, is: what creates this sense of urgency? There are a number of factors. However, I'll leave that to next week!
Thanks for reading and remember to practice safe real estate - always use a Realtor!
Century21 InTown Realty