Overbidding: the reality in Quebec's real estate market during the pandemic
Published on December 3, 2020
Since spring 2020, competition among buyers has been so fierce that overbidding is now the trend throughout the province. This, higher selling prices and faster selling times are all influenced by market conditions, never by whether a property is sold with or without an agent.
In fact, overbidding is defined as a property selling for more than the price originally listed. This phenomenon occurs when the market demand is higher than the offer, and it occurs more intensely when the market gets overheated.
Competition between buyers and the speed at which transactions take place are what make bidding rise. But a seller’s strategy can also trigger overbidding.
Imbalance in the market
The pandemic has created an unprecedented market frenzy among consumers. The number of properties for sale in Quebec has dropped by half. While the inventory remains so low and the number of buyers so high, the pressure on the real estate market will continue.
From January to March 2021, in Quebec’s hottest markets, 51%1 of property sales reported on DuProprio.com sold above asking.
“For all of Quebec, we’re talking about one in three homes selling for more than the listed price,” said Martin Desfossés, real estate coach at DuProprio. Sellers have every interest in using our services to prepare for this and to know how to manage a situation where they receive multiple offers.
- Learn more in the article Selling over the asking price: how to prepare, negotiate and decide
Also during the first quarter, the average selling time was about 50 days1 in the so-called hot markets. This is about 30 days less than for the same period in 2020.
A faster, simpler purchase
The owner is the one who knows the property best. And it’s not only price that matters but also the possession date, inclusions and conditions set by the buyer. So, allowing the potential buyer and seller to negotiate directly really speeds up the discussions and simplifies the buying process.
Find out how to buy a house in an overbidding context.
And let’s not forget that most sellers will, at some point, become the buyers. Therefore, the money they save by selling commission-free gives them added purchasing power when investing in a new property.
To find out how DuProprio can help you sell your property, call us at 1-866-387-7677 or watch our webinar.