Richmond real estate report – January, 2012

February 15, 2012

Richmond real estate > January, 2012 home sales

Source: RealtyLink Online

Housing Type Active Listings Jan Sales Av. 3 mth No. Months Average Price
Detached 835 89 84 9.94 $1,155,000
Townhouse 395 52 56 7.05 $505,000
Condominiums 750 72 81 9.25 $350,000

Richmond detached homesRichmond townhousesRichmond condos
Richmond’s total homes sale for January, 2011 at 213 units was about 20% higher than the previous month total units sale at 178. The total number of detached homes, townhomes and condos/apartments listed for sale surged higher and ended the month with around 1,980 for sale.  When compared to December’s active listings of 1,655, Richmond January’s total listings were about 20% higher. Some of the listings that expired the past few months may be re-listed for sale in the coming weeks. View Richmond condos for sale here.

There are around 9 months supply of homes in Richmond at the end of January.  The supply of detached homes reached 9.94 months and condos supply was at 9.25 months of inventory. The housing market in Richmond is in favour of BUYERS. More new listings can be expected in the coming weeks as seasonally Spring is the most active months for sellers and buyers. Since the market softened in the second half of 2011, home sellers in Richmond are expected to continue facing pricing pressure.

Home sellers who were more aggressive in reducing their selling prices had better success in selling their homes. For home buyers, this is a good time to get into the market as there are more choices and prices are already some 5% to 7% compared to the peak some 7 months ago.

Market outlook

The condo market will be the most challenging for sellers and new housing developers. Resale condos are competing with new condos for home buyers. There are increasingly more new developments offering discounts, incentives and some developers are absorbing the HST to sell their inventory of homes. Many home sellers can be expected to list their homes in January and February. Home sales are expected to be much better in spring as March, April and May are the best months when home buyers and sellers are most active.

Low mortgage rates to continue 

The current ultra low mortgage rates are not expected to be raised for sometime. Some banks offered historically low 2.99% 5-year fixed rate mortgage at the middle of January to drum up business. Most had terminated their offers at the end of February. Some credit unions are expected to maintained mortgages at such low rates until the end of February. The 2012 growth rate for Canada was recently revised lower due to the uncertainties faced by the financial markets in Europe, USA and Asia.

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 at 604-721-4817 or send James an email.

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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