33 West Pender St., Unit 401
DAYS ON MARKET
Ian Watt, Sotheby's International Realty Canada
The Action: Mr. Watt is concerned about the buying frenzy. People are assuming prices will continue to go up at the current pace, but he says, "that's mathematically impossible."
"Someone wrote a subject-free offer $25,000 above asking on the hood of their car on a place I had for sale in Delta. It hadn't even hit the MLS," he says. "Fast forward and he couldn't get his financing when the bank had it appraised. He just assumed he could borrow that money. So he went to a B-grade lender who made him pay a lot more in interest.
"Everyone is gambling here, based on the prices rising. And nobody is saying, 'let's pay off our mortgage' any more. They are all thinking, 'buy it for $5-million and sell it for $1-million more, and downsize to another place for $500,000 and be debt free.'"
What They Got: The 525-square-foot studio is in a seven-year-old building in Vancouver's partly gentrified Downtown Eastside. Since it was built, investors have rented out the open-concept unit, which overlooks an alleyway.
The Agent's Take: Listing agent Ian Watt is also the seller of the unit. He purchased the condo five years ago for $300,000 and has been renting it out for $1,690 a month. He sold to another investor, a local retired couple, who gave him the above-asking amount before he showed it to the public. Mr. Watt was surprised that it sold so quickly. "People are paying unprecedented numbers for properties," he says. "Last year I could have sold for $375,000. This year, it's $800 a square foot, on the fourth floor, with no view. It's just a studio space overlooking an alley. It's a good space, but not fancy."