Before you think that this commentator has finally succumbed to overtraining for May 6th Vancouver Half Marathon, I’ll clarify my thoughts. On the one hand, it is obviously this excess of demand over the available supply that has driven the speed of the sale and the seemingly unabated rise in prices. Where the “not really” comes in is the fact that, because a property is available for sale and there are many potential buyers, it isn’t automatic that the maximum market value will be achieved.

Consider this rather blatant illustration; assume Joan wants to sell her 2 bedroom West Van condo and her agent runs a 3 line classified ad in the Vancouver Sun advising a listing price of $450,000 and an open house this weekend, say Sun 2 – 4 pm. If one offer is presented to Joan and her agent at 6pm on Sunday, is it likely she will get that maximum (or fair) market price?

 Clearly the exposure is suspect in this illustration (if not the advice she is getting). It is precisely this “quality of marketing” (from asking price determination, to extensive and appropriate exposure, to assistance with the negotiation and the contract) that will determine an optimal sale result. This is why your Realtor must provide a detailed and well rationalized marketing plan before the property is listed for sale. Experience and quality do matter. Click here for an example of marketing a 1 bedroom + den condo RUTHERFORD PARK – PERFECTION – Panoramas, Photos and details – Large photos are my favorite ;)

But will the excessive level of Demand continue to outstrip the level of Supply? It will clearly ebb and flow as we go forward but over time it will evidence increasing values. So says a recent study by that conservative institution CIBC. This new report, entitled Much Ado About Nothing: Canadian House Prices Not Based on Demographics Alone, predicts that Canadian house prices are likely to double in the next 20 years, and not drop as some analysts have feared. Benjamin Tal, senior economist with CIBC World Markets, says that while cyclical forces will continue to influence the housing markets during the next two decades, "our finding is that the widely held fear of a softening in housing market activity and structural downward pressure on prices due to the changing Canadian demographic landscape are largely unsubstantiated.”

“I’m happy to send you a full copy of this most interesting study (Adobe Acrobat) – just send me an e-mail – This email address is being protected from spam bots, you need Javascript enabled to view it ”