It’s a seller’s market in the local real estate industry with a rising number of homes selling for well over the asking price.
The phenomenon is due in part to limited inventory and high demand, but it’s also driven by a bidding process that is creeping into the local industry – similar to that being used in highly-competitive real estate markets, like Toronto.
Over the last year, a total of 696 homes sold for more than the asking price – the vast majority (609) in the St. John’s metro region.
That compares to 177 that sold at asking and 529 that sold under asking.
While it’s great news for sellers, not everyone is thrilled as VOCM News found out when it took to the street to gauge people’s opinion on the phenomenon. One woman says it’s not good for first-time home buyers trying to enter the market – an opinion shared by many of the people VOCM News spoke with.
“It doesn’t give them much hope really,” she observed “it really doesn’t. If you can’t afford it, you can’t afford it, and that’s too bad for the young ones coming out today.”
Realtors suggest that there are a large number of seniors who are “overhoused” – meaning that they haven’t chosen to downsize, but VOCM News learned, that’s not sitting well with some homeowners.
“No, because then I’ve got to buy something else,” said one woman not interested in selling her home, “so then I’m back into another mortgage, and then I’m paying twice as much money. I think if you’re a senior looking to downsize to go to a condo, it’s perfect, but then you’re paying for the condo too.”
The trend in other parts of the province leans heavily towards homes that have sold under the asking price.
