Richmond Housing Report – June, 2012

July 17, 2012

Housing Report for Richmond, June, 2012

Source: RealtyLink Online

Housing Type Active Listings June Sales Av. 3 mth No. Months Average Price
Detached 1195 76 97 12.32 $1,107,000
Townhouse 515 59 69 7.46 $545,000
Condominiums 1020 113 109 9.35 $340,000

Richmond detached homesRichmond townhomesRichmond condosHome sales in Richmond for June turned out to be just as lacklustre as in May. The number of homes sold for the month was 248 which was 8% lower than the previous month sales of 271 homes. Active listings for detached homes, townhomes and condos/apartments in Richmond at the end of June, 2012 totalled 2,730 units edged 2% higher than the previous month’s total of 2,680.  The month also registered a large number of homes expiring or taken off the market by home sellers.  View Richmond homes for sale here.

There are current 9.93 months supply of homes in Richmond. The increase in the supply of homes and slower sales in Richmond continued to put pressure on home sellers to reduce their selling prices. They are hoping that lowering their prices will help in the sale of their homes. Many homes were selling at prices below their city assessment values for 2012.

Richmond real estate market outlook

Both the condo and detached homes markets are facing pricing pressure to go lower. There are more sellers trying to sell than buyers wanting to buy. Higher inventory and adverse media reports are causing buyer concerns and hesitation to buy now. Detached homes are having a much tougher time to attract home buyers.

Homes over $1,000,000 are not seeing much buying interest. The worse affected by the market slow down are homes $1,300,000. With current level of supply, price erosion is evident as more sellers are motivated to reduce their prices to sell their homes.

Home sellers are taking their homes off the market, or allowing them to go expired unsold. Sellers who need to sell will have to cut their prices more deeply to attract buyers.

Low mortgage rates to continue 

The current low mortgage rates at just over 3.00 for 5-year fixed rate mortgage are expected to remain at current levels for some time. 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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