2007 to 2010 Sales Summary

March 30, 2008

Richmond Housing Market - Historical Sales

The following table below summarized the Richmond 2007 to 2012 home sales based on statistics provided by the Real Estate Board of Greater Vancouver:

Housing Type/Year 2007 Sales/Av. 2008 Sales/Av. 2009 Sales/Av. 2010 Sales/Av. 2011 Sales/Av. 2012 Sales/Av.
Detached 1798/150 1122/94 1766/147 1726/144 1707/142 976/81
Townhouses 1495/125 829/69 1363/114 1133/94 1013/84 731/61
Condos 2056/171 1435/120 2062/172 1863/155 1542/129 1101/92
Total 5351/446 3386/282 5191/432 4722/393 4722/355 2808/234

Richmond housing market outlook

The low interest rates environment and reasonably strong home buyer interest has sustained the Richmond housing market the past four years. The recovery in 2009 after the credit crunch and loosening of credit helped to sustain steady demand for homes in 2010 through 2011. Demand slackened in 2012 as home buyers pulled back buying due to adversed predictions on a drop in home prices.

Supply And Demand For Homes in Richmond

The strength of the Greater Vancouver and Richmond housing market in particular can be measured by calculating the “absorption rate” which is a measure of supply and demand. It is expressed in months to sell all the units currently for sale. It helps both buyers and sellers understand what’s going on in the market. A supply/demand ratio of 6 months inventory is considered a market in balance - where pricing pressure is not forcing home prices going up or down.

When listings take a long time to sell, prices will drop. When there is not much supply, buyers are willing to pay more, prices will rise.

Taking the total active listings divide by the sale for the month the absorption rate is determined. Over 6 months supply represents a buyer’s market, and under 6 a seller’s market. You can follow Richmond housing market activities since 2008 using this link.

The list versus sold ratio or “absorption rate” as mentioned above will give a fairly good idea as how homes prices will be affected by the market demand for housing.

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Greater Vancouver Real Estates

March 20, 2008

cmhccma.jpgClick here for large chart.

The high level of new home construction and completion above 20,000 units were previously achieved in late 1989 and mid 1994. By the year 2000, construction activities dropped to a low 8,000 level. Read more

CMHC Housing Report

March 20, 2008

CMHC Housing Report - Canadians tackling housing debt

Matthew Jay, Canwest News Service, Published: Thursday, March 20, 2008

Canadians who have recently purchased, renewed or refinanced a mortgage want to quickly pay off their debt, a survey by the Canadian Mortgage and Housing Corporation indicated Wednesday.

Seventy-eight per cent of respondents said they wanted to pay their mortgages off as fast as possible and one-third said they had made a lump-sum payment toward that end.

The results indicate a strong tendency amongst Canadians to take advantage of opportunities to aggressively tackle housing debt, a sign homeowners are “fundamentally cautious” about their housing debt, CMHC said

Eighty-four per cent of homeowners who are making weekly or biweekly payments on their mortgages are doing so at an accelerated rate in order help to shorten their amortization period, according to the mortgage insurer. Read more

Richmond Housing Report - February 2008

March 18, 2008

Richmond housing Report - February, 2008
Source: RealtyLink Online, Listings versus Sales

Housing Type Active Listings Feb. Sold Listings Av. 3 months No. Months Average Price
Detached 500 130 115 4.35 $835,000
Townhouse 248 104 75 3.30 $450,000
Condominiums 580 144 128 4.53 $345,000l

Market Action> Below 6 months > Sellers Market > Price Trend - Up

The Richmond housing market remains very active and bullish for February 2008. The market for older townhouses between $385,000 to $425,000 is very strong. there is a pent-up demand for such properties. Older homes on large lots in prime Richmond locations are also in good demand, driving prices to the $800,000 level.

Using 6 months inventory as a measure of market balance, it is easy to understand that the Richmond housing market has more up-side potential. Richmond townhouses are in relatively higher demand than detached houses and condos.

Richmond detached houses - market update for February 2008
Source: RealtLink Online Listings Versus Sales and Price Trend

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The number of active listings and sales picked up in February after the lower seasonal listings and sales over the past 3 months. The active listings and monthly sales ratio at around 4.30 months is considered a Seller market with supply-demand pressure for house prices to move higher.

The monthly average and median price for February remain positive and registered higher values than the previous months. There was a substantial jump in the average selling price from around $780,000 to around $835,000.

Market For Million Dollar Mansions

The demand for older homes on large lots over the past few weeks were very strong as more home builders are actively buying such properties. Such building lots when eventually  new homes being built on them are priced and sold at  $1,600.000 to $1,800,000 range.

Based on sales activities and multiple offer situations mainly from Richmond new home builders, older homes with lot size between 8,000 to $9,000 in the the popular Broadmoore sub-division were snatched up at prices between $750,000 to $815,000. Similar older homes on large lots on arterial roads and those less favorable locations facing “T” junctions are priced much less at $650,000 to $715,000 range.

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Vancouver Housing Market

March 6, 2008

katsure204.jpgBullish Vancouver housing market

Pent-up demand, population growth, tight inventory levels, and the longest economic expansion since World War II collectively fueled one of the best decades on record for residential real estate in Canada. Since 2002, house prices rallied attracting even more buyers and investors into the market. House prices more than double in the major city centers in the Greater Vancouver area.

The strong price gains over the past few years have resulted in the Vancouver housing market beyond the reach of the average home buyers. Many home buyers have to be contented with buying the more affordable condos and townhouses. Read more