Richmond Housing Report For September, 2011

October 19, 2011

September Richmond Housing Report

Source: RealtyLink Online

Housing Type Active Listings Sept Sales Av. 3 mth No. Months Average Price
Detached 915 109 109 8.39 $1,250,000
Townhouse 494 63 73 6.77 $550,000
Condominiums 915 104 112 8.17 $350,000

Richmond detached homes
Richmond townhomes
Richmond condosRichmond’s total homes sale for September, 2011 totaled 276 units was about 6% higher than the previous month sale of 260 homes. The supply of detached homes, townhomes and condos/apartments at 2,324 units was about 8% higher than the previous month total of 2,155 units.

The *months of inventory for September 2011 at 7.85 months compared to the previous month of 6.50 months clearly confirmed the market is now in favour of home buyers. Both detached houses and condos are in excess supply to the demand for these homes from buyers. When the number of new detached homes, townhouses and condos that are available or going to be available for sale (not listed on the MLS System) from new developments are added, the supply and demand for these 3 housing types are expected to result in home prices under pressure to go lower. There are many price reductions and expired listings due to much lower sale the past 4 months. A price decline of 5 to 10% from the peak prices as seen in early spring are more likely from now until the end of the year.

The average selling prices for are holding around the same level for townhouses. The average price for detached homes surprisingly gained ground, while condos are clearly under pressure to go lower. Home buyers now have more choices and they are in no hurry to make their offers.

Current mortgage rates are still very low, and this will help to sustain the housing market. Mortgage rates are expected to remain low for some time, with possibility of rates easing a little towards the end of the year.

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 James Wong 604-721-4817 or email me.

* months of inventory (MOI) is a ratio based on total supply against the average 3 months sale. A ratio of 6 MOI is considered a “market in balance” . A ratio much higher than 6 will result in home prices under pressure to go lower and a ratio much under 6 will result in home prices under pressure to go up.

Disclaimer: The writer assumes no liability whatsoever, for errors and/or omissions and any consequences arising either directly or indirectly from the use of information provided by this website. Any data provided are strictly for guidance and planning purposes only and may not be applicable due to ever changing market dynamics.

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