What does it mean when a home has had multiple owners in a short amount of time? We examined one listing in Maple Ridge that has been on the market more than 10 times in less than 20 years. 

Imagine finding the home of your dreams in Maple Ridge after searching for months on end trying to find it. A mix of relief and joy courses through your veins. But then, in looking at the property history details, you notice something rather odd: the property has been bought and sold multiple times in the last decade. How can this be? What does this mean?

This imaginary scenario isn’t completely fictitious. We found a listing in Maple Ridge that has been bought and sold over 10 times in less than two decades. The good news is, there are two main factors that explain this pattern that won’t make you have to give up your dream home. 

In addition to countless renovations, this beautiful condo is close to many amenities: it’s walking distance from coffee shops, restaurants, parks and more. It’s also located right in the heart of Maple Ridge.  So what seems to be the problem? Why has the listing been bought and sold over 10 times in less than two decades? 

220 22661 Lougheed Highway, Maple Ridge, BC 

#1: Life happens and people move

Unlike a vehicle, where a car that has been bought and sold multiple times throws up all kinds of red flags about the vehicle in terms of maintenance issues, a house is much different than a car. For example, relocating to a new province or country for a new job, retirement, kids, upsizing, downsizing and a host of other reasons factor into why someone might move from one home to another. A car, on the other hand, is transportable in ways a home simply is not. After delving into the data regarding Maple Ridge’s housing market, we see a positive correlation between the market and this particular homes purchase history (table 1 and table 2).

#2: In a hot housing market buying and selling can make a hefty profit 

Sam Merhbod, CEO of Roomvu and realtor himself says that: “In a hot housing market, sellers can profit fairly quickly by buying a house, moving in and then sitting back and watching the real estate value rise. (Sometimes sellers don’t even pay capital gains tax if they lived in the unit).” Thus, when the market is hot, prices increase dramatically and sellers make more profit. Take a look at table 1 and table 2 below to see how the hot housing and purchase history of the Lougheed listing go hand-in-hand.

Table 1: Housing Market 2009-2019

The chart above (table 1) represents the sales-to-active ratio by year for the Maple Ridge area. The sales-to-active-ratio (column on the left) is indicative of the market type and speed at which homes sell. For example, a 100% sales ratio means a 10 in 10 homes selling rate (Market Type Indicator: Seller’s market); a 10% Sales Ratio means 1 in 10 homes selling rate (Market Type Indicator: Buyer’s market) and a 19% Sales Ratio means 2 out of 10 homes selling rate (Market Type Indicator: Balanced market) (SnapStats, 2019).

“Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12% for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months (The Canadian Real Estate Association, 2019).” 

As the chart shows, for most of the past 20 years, sellers experienced a balanced market except for 2016 and 2018. This could, in turn, explain the significant jumps in the price for the Lougheed listing from $167,000 to $219,000 in 2015-2017, and from $219,000 to $345,000 in 2017-2018 (refer to table 2). In addition, this can bring clarity to why the Lougheed listing sold in just one day when it was listed in 2017 and 2018.  

In the end, although it may seem like a bad thing for a house to be listed multiple times in a short amount of time, there are usually factors at play that have nothing to do with the quality of the house. Whether it’s a lifestyle change or a good opportunity to make a profit during a hot housing market, multiple listings rarely have to do with the house itself. 

Table 2: Purchase History Details: 220 22661 Lougheed Highway

Date	Asking Price	Sold Price	Buyer	Seller	Days on Market
8/15/2018 -Hot Market-	$354,818	$345,000	Peter Carleton	Franco Castiglia	1
1/29/2017	$219,000	$219,000	Bill Andrews	Rene Sandhu	1
3/30/2015	$179,900	$167,000	Mike Huber	Bill Andrews	84
5/9/2014     -Renovated-	$132,900	$110,273	Mike Huber	Julie Ramirez	195
11/24/2009	$175,000	$175,000	Danny Gerbrandt	Scott Meadus	46
4/4/2006	$183,900	$176,000	Scarlet Armstrong	Scarlet Armstrong	8
1/11/2006	$144,800	$142,000	Michael L Mclaughlin	Scarlet Armstrong	24
4/6/2004	$99,000	$98,000	Paul Kennedy	Darcy McLeod	62
1/6/2002	$79,900	$78,000	Mona Lamarche	Ron Antalek	56
1/7/2000	$79,000	$76,000	Don Carlson	Don Carlson	39

*Renovations: The condo was renovated in 2014 with brand new renovations such as a kitchen featuring maple cabinets, quartz countertops, stainless steel appliances and a beautiful tile backsplash. A bathroom featuring a modern bathtub, vanity and fresh title to finish. And many other new renovations such as laminate flooring, crisp paint, new light fixtures and freshly build closet organizers. 

References 

SnapStats, 2019. Sales Ratio. Retrieved from: https://snap-stats.com/faqs/what-is-m-a-r-and-why-is-it-so-important/

The Canadian Real Estate Association, 2019. Real Estate Board of Greater Vancouver. Retrieved from: http://creastats.crea.ca/vanc/