Richmond Housing Report For May, 2012

June 16, 2012

Richmond real estate report – May, 2012

Source: RealtyLink Online

Housing Type Active Listings MaySales Av. 3 mth No. Months Average Price
Detached 1175 101 106 11.09 $1,100,000
Townhouse 495 77 78 6.35 $515,000
Condominiums 1010 93 111 9.09 $351,000

Richmond detached homesRichmond townhouses
Richmond condosRichond’s total home sales for May, 2012 at 271 units was 11% lower than the previous month sales of 306 homes. The total number of detached homes, townhomes and condos/apartments listed for sale at the end of May at 2,680 units was 6% higher than the previous month’s total of 2,525.  The total active listings for the 3 types of homes in Richmond now surpassed the highest listings registered in September, 2008. View Richmond homes for sale here.

The supply of homes in Richmond at the end of May at 9.08 months edged higher compared to the previous month’s figure at 8.07 months of inventory.  The supply of detached homes, townhomes and condos increased further in the month as more listings were put on the market. Overall, the housing market in Richmond is in favour of BUYERS, with a great selection of homes to choose from. Daily price reductions are common as sellers adjust their selling prices to try to sell their homes.

Richmond real estate market outlook

Both the condo and detached homes markets are facing some challenges. Resale condos have to compete with presale and new homes that are competing for buyers. Similarly, detached homes are having a tougher time to attract home buyers especially for detached homes that are over $900,000. Homes over $1,300,000 and new homes that are over $1.80 million are not selling well. With current level of supply, price erosion is evident when more sellers are reducing their prices, and transaction prices are trending down.

Homes under $900,000  in Richmond and those priced realistically are getting more showing activities There are 566 homes over $1,200,000 listed for sale in Richmond. With past 3 months average sale of 32 units, there are now 17.7 months supply of homes. The slow sale pace will result in home sellers either taking their homes off the market, or allowing them to go expired unsold. Some seller’s who must sell will have to resort to much deeper price cut to sell their homes.

Low mortgage rates to continue 

The encouraging news for the market is that the current ultra low mortgage rates are not expected to be raised for sometime. The extremely attractive low rates at under 3.50 for 5-year fixed rate mortgage by Canadian banks and credit union help to encourage buyers to make their purchases.

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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