VANCOUVER (NEWS 1130) – If your strategy to get into the local housing market is to jump in on a pre-sale condo, you likely have some tough competition but don’t blame this one on foreign buyers.

Realtor and real estate blogger Steve Saretsky says pre-sale condos and town houses in the suburbs are hot commodities with local buyers with many looking to resell their assignments for a higher price. “It’s just becoming a bit of a gong show,” explains Saretsky.

“For example, there is a townhouse development under construction in Langley that was up for pre-sale. People buying in Langley are all locals. It’s not off-shore buyers. That project wasn’t marketed offshore. I think that just tells you right there that people who had bought these in May and have already gone and flipped those, 15 per cent of the building, it’s pretty substantial.”

Saretsky says it’s an extremely competitive market where you can submit an application for a condo and you get outbid by 200 other people. “Developers today are charging excessive prices for them and there’s definitely a lot of inherent risk that people don’t really realize.”

Saretsky adds it appears some downtown developments are being exclusively marketed offshore, “but at the end of the day no one has concrete numbers because developers hold their buyers list. The CRA has to take them to court just to get their list.”

Even though the market may be tough for first-time home buyers, Seretsky, says pre sale properties are an attractive option in a tight market.