The Kootenay Association of Realtors says there are 7 active buyers for each new listing that comes on the market (and no, I have no earthly idea how they came to that statistic, but it feels plausible to me).
Now, imagine facing the other 6 in a competition to buy a house.
Under current Canadian law, as with the rest of the world with the exceptions of New Zealand and Australia, you or the other 6 buyers will have no idea what each other are willing to pay. It's an asymmetry that strongly benefits the Seller. Often leading to sales prices that are well above REALTOR estimates and (sometimes) the sellers' wildest, wettest dreams.
Justin Trudeau has recently announced an intention to eliminate this "blind bidding" process in an effort to look like he's doing something about housing affordability in Canada. Nobody in the real estate industry thinks that it will, but what the hell do we know, right?
Don't get me wrong: in general I strongly dislike government intervention in the housing market. It always comes with unintended consequences that exacerbate problems and make things harder for my clients. But on this one, I'll just say I hate the idea less than most.
If everyone in our society is to have a home, we will need to be savage about efficiency starting, like, yesterday. And blind bidding is silly and arcane. It's a remnant of a system where all REALTORS, on both the Buyers' and the Sellers' side were working for the seller. And now is as good a time as any to rethink it.
That said, it should really be priority 50 after all of the things that government can ACTUALLY do to increase affordability like:
1. Increase supply
2. Increase suppy
3. Increase supply
4... you get the idea.
Wanna buy or sell real estate in the Kootenays?
Call or text me at 250-509-0920
I'd love to help. It's what I do!
Paul Shreenan, REALTOR®
Fair Realty
Nelson, BC Canada
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