In what is being touted as another sign Vancouver’s red-hot housing market is spiraling out of control, a home in the city’s West Side has sold for a whopping $735,000 over asking.
The 3,429-square-foot home in Kitsilano fetched $4.23-million, after just 10 days on the market. The seven-bedroom, five-bathroom home was originally listed for $3.49-million.
Realtor Ian Tang says the final selling price is not surprising.
“In [a] seller’s market it’s typical for agents to list lower as a strategy because we’re trying to drive a multiple offer situation,” he said.
The sale price for the three-level home is $1.6-million over its recently assessed value.
That’s a record for standard non-view properties in the area. The home, at 3555 West 1st Avenue, sits on a standard 33-foot lot.
Tom Davidoff of the UBC Sauder School of Business says in a market like Vancouver’s, the listing price is now more of a suggestion than anything else.
“It’s a signal to get people in the door,” he told CTV Vancouver. “And what it means beyond that in a market like this is hard to say.
Davidoff says the heated market is becoming more of a housing auction, as the prices surge far beyond the assessed value.
“I would certainly caution a buyer against paying more than they’re able and willing to pay for a property,” he said.
“But the appropriate price for a property in Vancouver is very hard to determine.”
And to be fair, the century character home has been extensively renovated, which is more than you can say for a recent teardown nearby that just sold for $2.48-million.
The average price for a single-family home in Vancouver hit a record high of $1.8-million in January.
The Canadian Real Estate Association says the average price of a house in B.C. overall increased 27 per cent in the past year. In Vancouver, house prices jumped 30.9 per cent.
