Richmond Housing Market Update

October 14, 2013

Richmond’s housing market is stabalizing

Richmond experienced one of the highest run-up in home prices the past 10 years. The fear of a impending collapse in home prices in 2013 did not happen. The built up in the supply of homes in the second half of 2012 slowed down through 2013, aided by improved sales since March, 2013.

It’s the time of the year that home sales in the Autumn and Winter months will slow down considerably. The MOIs for detached homes, townhomes and condos are now at more balanced levels as shown below: Read more

Richmond Housing Report For September, 2013

October 13, 2013

Housing Report for Richmond, September 2013

Data Source: Real Estate Board of Greater Vancouver

Housing Type Active Listings September Sales Av. 3 mth No. Months Median Price
Detached 985 127 136 7.24 $952,000
Townhouse 450 69 86 5.23 $540,000
Condominiums 805 122 132 6.10 $342,000
Total Sales 2240 318 352 6.36

Richmond detached homesRichmond townhousesRichmond condosHome sales in Richmond for September, 2013 totaled 318 homes were 6% lower than the 339 sales recorded the month before in August. Home sales for the remaining months of 2013 are expected to be lower from October on-wards until sometime in January of 2014. Total active listings count at 2,240 homes at the end of September, was at about the same level the previous month. View Richmond homes for sale here.
There was a small increase in the MOI at the end of September, registering a 6.36 months of supply compared to the previous month of 6.29. The MOI for detached homes and condos were about the same as the month before, while the MOI for townhouses edged up slightly from 4.83 to 5.23. New listings were posted at a moderate pace, while home sales and expiry together almost matched the new listings added in September.

At current supply and demand where the housing market is in balance, home sellers were able to hold off lowering their listing prices to attract buyers.

Richmond housing market outlook

Home sales in Richmond can be expected to taper off the next 4 months. Home buyers who are buying in the next few months are expected to pay higher mortgage rates compared to those who bought the previous 3 months.

The statistics for Richmond detached homes are:

  • 927 single family detached homes are listed for sale. 
  • 624 (67%) of these homes are over $1,000,000.
  • the average 3 months sale for homes over $1.0 million was 58 homes
  • MOI – 11.00 months of supply.
  • 371 single family detached homes are over $1,500,000.
  • average 3 months sale was 24, MOI – 15 months of supply 

The market segments under pressure are the higher priced single family homes over $1.0 million and resale condos competing with new condos.  

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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