Challenges Faced By Richmond Home Sellers

April 28, 2013

2013 will be a challenging year for home sellers

saffron.jpgRichmond current has over 10 months supply of homes, with more listings expected to come on the market the next few months. Buyers are in no hurry to buy in spite of all-time-low interest rates at 3.0% or less for 5-year fixed mortgages. Many resale homes are languishing on the market due to lack of buying interest… home buyers are not willing to pay the prices expected by sellers. View condos for sale in Richmond.

The first salvo from Parc Riviera

Parc Riviera, a riverfront project in north-east Richmond is a 20-acre master planned community with five acres of parks and riverfront trails.  The developer is now offering pre-construction sale of condos starting from the mid $200,000’s. The selling prices for the first phase of condos and townhouses at Parc Riviera could set the stage for Richmond home prices to come down.

The developer’s ad placed in Vancouver 24 Hrs and Richmond News advertised townhouses selling from $369 per sq ft, and condos from $386 per sq ft. Current selling price per sq ft for resale wood-frame condo in Richmond is around $405 to $420 per sq ft. The pricing trend for new developments in Richmond can be expected to follow similar offers as competing projects are forced to adjust their selling prices. Resale homes will be under pressure to compete for buyers.

Resale condos and townhouses

Home prices at Parc Riviera are priced some 10% to 15% lower than current selling prices of resale condos and townhouses in Richmond. Current resale lowrise wood-frame condos and townhouses are priced from $435 to $475 per sq ft. Recent sales of condos and townhouses in Richmond were found to be between $400 to $450 per sq ft. The overhang of too many homes chasing too few buyers could only mean lower selling prices for home sellers. Motivated sellers taking low-ball offers are setting the trend for lower prices in the coming months.

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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