Richmond housing market cooling off

June 26, 2010

 Signs of Richmond housing market cooling

The increase in the list/sale ratio (months of inventory) is steady, but not alarming. The ratio climbed from 2.9 months inventory in January to 4.39 months of supply last month. Home decline in home prices are likely to be started by weak sellers are under pressure to sell. Until the list/sale ratio cross over to 6 months inventory, home prices may be maintained at current level. Currently, some sellers are adjusting to the slower market by reducing their selling prices. The selling pressure is not as great and urgent as seen in the spring of 2008.

ri-det2.gifri-att2.gifri-apt2.gifSome weak home sellers sensing the weakening market, may start cutting prices to dispose their homes. A double top is now forming with declining sales volume as can be seen from the detached, townhouse and condo charts:

Heading towards a balanced market?

Many home buyers are ready to buy now if they find the suitable homes. Current mortgage rates between 3.0% to 4.5%  are still very low historically and the low rates are positive for the market. The implementation of the new HST (if this is passed by the BC Government)  on July 01, 2010 may not have a significant on the demand for housing.

You can use the link here to view homes available for sale in Richmond.

For more information on Richmond real estate, you are welcome to contact me at 604-721-4817 or email me.

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