Weekly stats update courtesy of the VREB.
|Wk 1||Wk 2||Wk 3||Wk 4|
|Sales to New Listings||53%||
|Months of Inventory||
Exactly the same rate of new listings as this week last year, but 31% fewer sales. Primarily still because last year a potential buyer had 750 additional properties to choose from, so the ratio of viable candidates to the dregs was higher. However this is the first month I’ve seen where sales are down more than listings. What to watch for is if months of inventory start increasing compared to last year, then we will know the market is backing off the record pace of last year. So far they are just about identical.
One difficulty that buyers still have in today’s market is figuring out which properties are set up for multiple offers. Of course an agent can tell you that, but it would still be nice to see from the listing whether the price is realistic or just a tease to get the frenzy going. This is indicated in the “Member to member” notes field in the listing information but there is no standard way to indicated a delayed offer listing, with every agent doing it a little bit differently. One reasonably good measure is if these notes say that “clauses 5aiii and 10b are deleted”. What are those clauses?
5 a iii – The seller agrees to pay the listing brokerage a gross commission of X of the sale price of the property if an offer to purchase is obtained from a prospective buyer during the term of this contract who is ready, willing and able to pay the listing price and agrees to other terms of this contract, even if the seller refuses to sign the offer to purchase
10b – The seller agrees to accept an offer made during the term of this contract by a person ready, willing and able to purchase on the terms set out in this contract
In other words, the seller is not obligated to take a full price offer with no conditions and if such an offer arrives, is not obligated to pay commission to the listing agent. Not all properties that have this note result in multiple offers, but it’s one clue that the sellers may be expecting an above-ask selling price. Would be nice if the information about delayed offers was required to be public to avoid wasting peoples’ time on Realtor.ca with unrealistically low list prices.