If you are already out looking for a new or first home in certain neighbourhoods of Vancouver you already know there is far more buyers then there are Vancouver homes for sale. 

Open houses are packed and multiple offers with sales prices above asking are happening with some regularity.

What is driving the demand and will it last?

It is assumed that low interest rates and the reduced prices that were brought on by the recession are the most significant driving force.

Very low inventory is allowing sellers to receive multiple offers and often higher prices than expected IF they have a desirable property priced well.

The buyers that are buying are holding to standards and snapping up the best properties while those less desirable or over priced continue to sit on the market for months.

The unfortunate part is a lot of homebuyers are stuck dealing with the disapointment and frustration as they are one of the unsuccessful offers on the elusive desired property.

As far as how long will this last? Assuming that even 75% of the home buyers that are writing offers and not succesful in multiple offer situations continue to look, it is likely to carry on into the fall and/or until all these buyers have bought or surrender to the low inventory.

What is the solution for those not selling? Another topic for another day!