Aerial image of the Oak Bay Beach Hotel and beautiful Oak Bay coastline.

Victoria is amidst a severe supply shortage in the single-family home market. Listings are down nearly 30% and demand is way up when compared to the same period last year.

The real estate board recently stated, “This represents the lowest inventory of active listings at month-end in at least the last 25 years”.

It is currently commonplace to see bidding wars and sales well over the asking price.

In this market, every detail in your offer makes an impact on whether it is accepted. Here are three tips to ensure your offer is as strong as possible:

  1. Submit an unconditional offer – sellers will often accept unconditional offers over conditional offers even if the sale price is 3-5% less.
  2. Give the sellers their EXACT preferred closing dates – making the transaction convenient for the seller makes them more likely to accept your offer.
  3. Shorten the subject period – 8-10 business days is the typical length for a subject period but reducing this to 4-5 days will make your offer stand out.

In the current market, being quick to act is crucial. The average number of days on the market has reduced significantly in January 2021 as buyers get a head-start on the spring homebuying season. This demand is fueled by rock-bottom interest rates and a preference for single-family homes triggered by COVID.

in the table below, you’ll notice there are significantly more sold than pending properties – this is due to seasonality as January is not a popular month to move homes.

Sales and pending prices above the asking price are becoming more common. You can see the homes most recently listed are often selling for above their asking price. This indicates that the market is heating up in anticipation of a strong spring home-buyers season.

Oak Bay January 2021 Sold & Pending Listings (Single-family)

wdt_ID Status Address Price List Price Sold List vs. Sold Beds Baths SqFt Fin Total Year Built (Est) Lot Size SqFt Date Listed Days On Market
1 P 591 Island Rd 3,600,000 3,850,000 250,000 4 3 3,193 1986 16,900 2021-01-28 0
2 P 3275 Ripon Rd 2,100,000 2,190,000 90,000 3 4 2,865 1957 23,925 2021-01-18 1
3 P 3466 Plymouth Rd 1,249,000 1,215,000 -34,000 3 2 1,640 1959 14,649 2021-01-15 14
4 P 836 Monterey Ave 999,000 1,065,000 66,000 3 1 1,268 1935 5,472 2021-01-15 4
5 P 3300 Exeter Rd 2,380,000 2,250,000 -130,000 5 5 4,429 1957 20,398 2021-01-14 9
6 P 2161 Beaverbrooke St 1,350,000 1,310,000 -40,000 3 4 1,933 2016 3,049 2021-01-08 11
7 P 2776 Thompson Ave 1,295,000 1,350,000 55,000 5 3 2,305 1936 6,850 2021-01-06 12
8 P 2545 Beach Dr 1,399,000 1,611,000 212,000 4 3 2,994 1988 7,500 2021-01-04 4
9 P 117 Barkley Terr 2,359,000 2,320,000 -39,000 3 4 3,666 1962 11,665 2021-01-03 18
10 P 1552 Clive Dr 2,150,000 2,050,000 -100,000 4 4 2,824 1948 5,000 2021-01-01 25

If you’d like help navigating and capitalizing on the current real estate market, please don’t hesitate to reach out.

Dustin Miller is an advocate for transparent real estate data and prides himself on having Vancouver Island’s most popular sold home database on the internet. If you’d like to search for recently sold home prices in your neighbourhood, use our interactive map feature.

The post How to Write Competitive Offers in a Hot Real Estate Market appeared first on Victoria Real Estate Agent.

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