This past month we successfully sold a beautifully renovated townhouse in Coquitlam (http://www.citytosuburb.ca/mylistings.html/details-42520138).
This isn't a blog post bragging of that sale (In fact I find those posts to be annoying to be honest). However, what I did find interesting was the current buying habits of the buyers of this price range, and primarily the habits of the First Time Home Buyers. This townhouse was in the price range of $200,000 to $300,000.
This home did receive a offer in the first weekend, which was very very close to the asking price which did not come together based on other factors, besides the price obviously. Within a month, the property had an second offer close to asking price at which was accepted and later fell apart after two weeks for other reasons.
Now this situation did give a great incite into a trend taking place in the market place. Normally what would have happened with a nicely renovated, well priced home like this one, is the accepted offer would have come together and sold within a weeks time. But because it didn't, and a second great offer was accepted and tied up the home for 2 more weeks, the property seemed to the active buyer out there, that the home wasn't selling. This property was on the market now for over 100 days. We ended up getting two more offers that did not meet the sellers needs. The buyers were starting to think the property was not worth the asking price because of how long it had been on the market.
Here was what I found interesting: We had an open house after the townhouse had been on the market for 100 days. We had a large number of buyers attend the open house, of which half of them said "we've been watching this home on your website/the MLS for three months." Three months. I thought to myself?!?! And they only NOW are coming in to view the home? That got me thinking: "Come to think of it, the two latest offers had been from buyers who had viewed the property a month back, and only then were bringing an offer in." We also had other numerous requests for second showings, of which the buyers had seen it a month or even two months ago.
Now this isn't an unusual thing to see, a buyer taking their time in deciding on a home. But what is unusual, is the amount of buyers doing this at one time. This to me, clearly indicates what the market trend is.
What does this mean?
This is definitely something to keep in mind if you are a buyer in the market place, and are competing with other buyers for properties in the $200,000-$300,000 price range. But more importantly, if you are a seller in this market place, be prepared to have you home sit on the market in most cases as you look for the right buyer for your home.
If you have any questions regarding the real estate market, or if you have a home in the Coquitlam area you would like to buy or sell, contact Alex Jopson 604.626.1483