Richmond Real Estate > Chinese REALTOR®

January 31, 2013

Real Estate in Richmond

Richmond Chinese realtor Richmond Real Estate in British Columbia is subject to changing market forces that affect the supply and demand for homes. Richmond is one of the most favoured locations in the lower mainland of Vancouver. Many new immigrants, especially those immigrants from China, are attracted to Richmond because of the large Chinese community in the area. James Wong, a long time resident of Richmond and a Chinese Realtor, is active in Richmond, Vancouver and Burnaby. and long time . 

James speaks English, Cantonese and Mandarin, allowing him to communicate with practically any home buyer or seller in a language they can understand.

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Richmond Sellers Holding On To Their Prices

January 21, 2013

A market ‘Standoff’

terranovahse290.jpgLike in other parts of Greater Vancouver, Read more

Richmond Detached Homes – Sale price Versus City Assessment value

January 20, 2013

Richmond mls homes for sale

A stand-off between home buyers and sellers

A sample data extracted from the Real Estate Board of Greater Vancouver’s home sale for detached homes in Richmond recently revealed a fast deteriorating housing market. During the period from Dec 01, 2012 to Jan 15, 2013, detached homes in Richmond between 5 to 30 years old with lot sizes between 5,000 to 8,000 sq ft showed that nine out of ten of these homes were sold below their city assessment values:

1. Property Address Sold Price ($) Assessment Value ($) % Below City Assessment
1. 5320 Francis Rd 650,000 775,000 -11%
2. 10151 No 1 Rd 877,500 916,000 -14%
3. 10100 St. Vincent Pl 945,000 1,005,000 -6%
4. 3571 Pleasant St 1,145,000 1,109,000 +3%
5. Lindsay Rd 1,181,700 1,362,000 -13%
6. Eperson Rd 1,194,000 1,366,000 -13%
7. Raymond Ave 1,268,000 1,489,000 -15%
8. Woodwords Rd 1,285,000 1,411,000 -19%
9. Barnard Rd 1,314,000 1,489,000 -12%
10. Herbert Rd 1,350,000 1,624,000 -17%

These homes were on average selling 11.7% below their city assessment values.

  • list price from $689,000 to $1,388,000 with average price of $1,193,200
  • sale price from $650,000 to $1,350,000 with average price of $1,120,900
  • the average sale price was 6% lower than the average list price
  • the average sale price was 11.7% below the average city value
  • the average number of days these homes were sold was 81 days 

When compared to early 2011, Richmond home prices were selling at around 10% to 15% above their city assessment values. The extend of the price drop in home prices for Richmond detached homes is estimated to be 21.7% to 26.7% below the peak prices of homes in the middle part of 2011.

Prior to May 2011,  the MOI for Richmond detached homes were under 6 months of supply. The tight supply and rapid gain in detached home prices in Richmond from December 2010 to April 2011 was reflected in the MOI for the period at 2.50, 2.70, 2.84, 3.13, 4.08 and 5.03 for December, January, February, March, April respectively. Today’s MOI for Richmond detached homes is over 12 months… a very different picture compared to 2 years ago.

A typical neighborhood like The Hollys is expected to continue to experience price decline for a few years. As cited earlier, there are just not that many home buyers available and capable of buying homes at today’s lofty prices.

A buyer for a $767,000 entry level home in the Hollys, needs to provide proof that the family has earned income of $120,000 for a loan of $613,000 (80% financing). The borrower has to provide $154,000 (20%) down payment to get the above loan, at 3% 5-year fixed term mortgage with 25 years amortization. The borrower’s monthly payment is $2,900, with an additional annual outlay of $3,500 for property tax and utilities.

Home buyers are fast learners, and they know that today’s homes can be bought at 10% to 15% below their city assessment values.  If they are not getting that type of discount, they walk. The Richmond detached home market now is created by sellers who need to sell. As shown above, sellers who are hoping to sell their homes at their city assessment values would be disappointed. There was only one out of 10 homes that was sold close to its city value! On average home sellers have to brace for more than 10% discount from their city assessment values to sell their homes.

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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Richmond Housing Report For December, 2012

January 19, 2013

Housing Report for Richmond, December 2012

Data Source: Real Estate Board of Greater Vancouver

Housing Type Active Listings Dec Sales Av. 3 mth No. Months Average Price
Detached 800 44 66 12.12 $1,160,000
Townhouse 380 40 50 7.60 $515,000
Condominiums 765 54 73 10.48 $351,000
Total Sales 1945 138 190 10.24

Richmond detached homesRichmond townhomesRichmond condos apartments

Home sales in Richmond for December at 138 homes were almost matched by the 10-year low of 84 homes that were sold in November, 2008. Richmond’s December homes sale was 9% lower than the previous month sale of 207 homes. Price discounting continued as motivated sellers tried to attract buyers, while many homes went expired unsold or taken off the market. There were 195 lesser homes listed for sale in Richmond at the end of December, 2012.  The overall months-of-inventory (MOI) at 12.24 for December was relatively unchanged compared to 10.65 months in November. The drop in active listings was matched by a drop in sales for the month. View Richmond homes for sale here.

Richmond real estate market outlook

The Months-of-inventory (MOI) in Richmond from at current level is as low as it can get for now. The reduction in active listings due to expiry and homes removed from the market helped to keep the MOI at current level when sellers either pulled their listings off the market or allowed their homes expired. A surge in active listings in Richmond is expected the next few weeks.

Many people in the real estate industry are hopeful that home sales will improve after January, 2013. An up-stick in sales can be expected in the next few weeks. The overall market sentiment will likely remain subdued.

There is a marked difference in the number of active listings between January 2013 and 2012 which had just 1,655 at the beginning of January. The supply of homes in Richmond for 2013 will now take off from a much higher base of 1,945 homes… 18% higher than the beginning of 2012. The surge in listings and moderate sales the next few months will once again result in the MOI reversing. It will result in Richmond’s MOI surpassing 12 months of inventory. A repeat of high MOI for detached homes similar to 2012 can be expected for 2013.

We are likely to see further price erosion in home prices in Richmond. The post
Spot Light On Home Prices In The Hollys” is a typical representation of home prices in Richmond’s neighborhoods. With high supply of homes, weak demand and negative market sentiment, lack of qualified buyers and high home prices will likely take its toll on home prices. Detached homes in The Hollys and elsewhere in Richmond could undergo another 5% to 10% price drop in 2013.

During the period from Dec 01, 2012 to Jan 15, 2013, a study revealed that nine of the ten Richmond detached homes that were sold with 5,000 to 8,000 sq ft land aged between 5 to 30 years, were sold below their assessment values. These homes were on average selling 11.7% below their assessment values.

More price erosion can be expected as home buyers stay on the sideline waiting for home prices to drop some more. Serious buyers when making offers, typically test sellers’ motivation by making low ball offers.

Richmond detached homes are expected to suffer the most in price erosion.

There are currently 576 homes for sale at prices above $1,000,000. With average past 3 months sale around 30 homes, the MOI is at 15.76 months. There are 278 homes over $1,500,000 in Richmond. At an average sale pace of 10 homes the past 3 months, this translates into 27.80 months of supply.  

2013 will be another difficult year for Richmond

The absence of home buyers, dampened market sentiment, and tightened lending rules are expected to result in further price erosion in 2013. The current MOI though better than the past 2 months is expected to reverse when more new listings hit the market the next few weeks. Richmond’s market for 2013 is expected to have persistently high number of homes for sale and below average buying interest.

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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Spot Light On Home Prices In The Hollys

January 16, 2013

Our housing problem is not just in the Hollys

The Hollys is a neighborhood in North Steveston with mostly entry level single family homes. These homes in the Hollys’ are mostly built on smaller lots ranging in sizes from 3,800 to 5,500 sq ft with living areas between 1,800 to 2,200 sq ft. These small single family homes were good starter homes for small family years ago. But, with prices hovering just under $800,000, these homes are beyond the reach of moct home buyers.

What used to sell in the Hollys for $400,000 in 2004, ratcheted up to reach $800,000 in 2011. 

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What do expect of the housing market in Richmond?

January 13, 2013

 A stand 0ff that will not last

Vancouver West homes for saleLike in other parts of Greater Vancouver, the current real estate market in Richmond can be best described as “a stand off” between home sellers and buyers. A typical area to Read more

Will the housing market for 2013 be better?

January 12, 2013

What do expect of 2013?

The drop in active listings in the last month of 2012 was dramatic. From around 17,700 at the end of October, active listings dropped to around 12,000 at the end of December, 2012. One-third of the listings disappeared from the MLS system, mostly due to expiry and some of these listings were terminated.

The chart below showed a clear trend of declining sales as far back as 2005. The decline in sales could be attributed to high home prices getting out of reach by home buyers. Read more