It’s a Buyer’s Market

November 14, 2011

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties on the region’s Multiple Listing Service® (MLS®) system reached 2,317 in October, a 1 per cent decrease compared to the 2,337 sales in October 2010 and a 3.2 per cent increase compared to the previous month. Those sales rank as the second lowest total for October over the last 10 years.

“Right now, prospective home buyers have a good selection of properties to choose from Read more

Richmond Housing Report - October

November 14, 2011

October Richmond Housing Report

Source: RealtyLink Online

Housing Type Active Listings Oct Sales Av. 3 mth No. Months Average Price
Detached 875 106 103 8.50 $1,190,000
Townhouse 480 63 65 7.38 $540,000
Condominiums 890 94 98 9.15 $360,000

Richmond Detached Homes
Richmond Townhomes
Richmond condosRichmond’s total homes sale for October, 2011 at 263 units was at about the same level with the previous 2 month. Although the total number of detached homes, townhomes and condos/apartments listed for sale dropped off slightly, but with 2,245 units listed for sale and average sales around 266 units, the market is facing some pricing pressure to go lower.

The *months of inventory for October 2011 at 8.43 months compared to the previous month of 7.85 months further confirmed the housing market is now in favour of buyers. Current supply of Richmond Detached houses, townhomes and condos are in excess supply compared to the  demand for these homes from buyers. The next 3 months are seasonably slow months, many homes will likely go expired or remained unsold.

When the number of new detached homes, townhouses and condos that are available for sale (not listed on the MLS System) from new developments are added, there are now far too many homes on the market. From a home buyer’s point of view, this is a good time to get into the market as there are more choices and prices are heading lower by some 5% to 7% compared to the peak around spring time this year. Further softening in the market and home prices can be expected the nest 3 months.

The average selling prices at best may hold at current level, but pricing pressure may force some home sellers to discount more in order to sell their homes. The saving grace is current mortgage rates not expected to be raised for a while as the economies in Canada and elsewhere are in poor shape. Current ultra low mortgage rates help to sustain the current housing market.

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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