Detached, single-family homes that 'show well' in such popular real estate spots as the leafy west end can go for more than the asking price

The outcome of some recent house sales in parts of peninsular Halifax is excellent news for sellers, but it’s perhaps a startling revelation for buyers.

That’s because detached, single-family homes that “show well” in such popular real estate spots as the leafy west end can go for more than the asking price.

This has been a common occurrence in much larger markets (like Toronto), but most homebuyers in Halifax aren’t used to seeing house sales over the list price – sometimes taking place following multiple offers.

After a protracted lull in the marketplace, it is “a seller’s market in very particular pockets” of the peninsula, including the west end, a veteran real estate agent with Royal LePage Atlantic told HalifaxToday.ca.

“If you’re in one of these sought-after pockets, and you’re thinking of selling and everything looks nice on the inside, (then) price it ... what the market is suggesting or maybe $3,000 to $5,000 even less,” Robert McGregor said. “And then hope to stand back and wait for the action.”

Now that the winter of 2017-18 is history and the Easter long weekend has come and gone, lawn signs announcing homes for sale are popping up like springtime crocuses.

McGregor said in the last 90 days, nine residential properties on the peninsula went for over the list price and two sold for the asking price. Others sold for close to the list price, he said.

Going back three months, there were 94 detached, single-family houses listed for sale on peninsular Halifax, McGregor said. During that same time period, 41 have sold.

For buyers seeking a resale home in their price range, the desire to live in a certain neighbourhood – one that attracts a lot of interest from potential homeowners – may push their purchase offer outside their financial comfort zone.

“If (buyers) are focused on a particular neighbourhood or street, (and) ... it happens to be in what may be deemed as a hot area, get ready for battle,” said McGregor.

Sellers, on the other hand, are celebrating.

Here are examples of the pay-more-than-the-asking-price situation: Last month, a single-family house on Oak Street sold for $400,000. The seller was asking for $379,900.

Another sale in March involved a single-family home on Berlin Street going for $462,000. The seller had received a handful of offers and been asking for $419,900.

In February, a single-family house on Allan Street sold for $416,000. The seller was seeking $409,000.

There are plenty of other real estate transactions in peninsular Halifax that still involve the traditional way of negotiating a sale price that’s lower than the list price.

But depending on the condition of the home, the neighbourhood (and its supply of properties) and the number of prospective buyers competing for a house, sellers could end up with more money than the dollar figure on their home’s original price tag.

McGregor, who said he enjoys working with first-time homebuyers, acknowledged exceeding a seller’s asking price is a hard pill for a rookie purchaser to swallow. He said if they’re willing to broaden their search into other neighbourhoods, “then they might stand a little better of a (house) shopping experience.”

According to the fall 2017 forecast from the Canada Mortgage and Housing Corporation, Halifax’s resale market saw growth – increases in sales transactions and average prices – last year, and it was anticipated to continue.

Because active listings have been steadily declining and the resale home inventory remains low, CMHC’s report said, “this will have an impact on price growth as sellers will have the upper hand in price negotiations.”

McGregor said sales activity in certain peninsular Halifax districts shows a resurrection of intensity not seen since the period of 2004 to about 2008.

Michael Lightstone is a freelance reporter living in Dartmouth