Housing Report for Richmond, January 2014

February 19, 2014

Housing Report for Richmond, January 2014

Data Source: Real Estate Board of Greater Vancouver

Housing Type Active Listings January Sales Av. 3 mth No. Months Median Price
Detached 725 114 104 6.97 $988,000
Townhouse 345 61 62 5.56 $548,000
Condominiums 790 89 101 7.82 $349,000
Total Sales 1860 264 267 6.97

Richmond detached homesRichmond townhousesRichmond condosHome sales in Richmond for January, 2014 totaled 264 units were 6% higher than the month before. The year end holidays and poor weather conditions were the main reasons for the lower buying activities. There was a net increase of 180 homes in the month, pushing active listings higher from 1,700 to 1,860 units. Compared to the a year ago’s listings of 1,900 homes, the active listings for Richmond in the first month of 2014, were marginally lower. View Richmond homes for sale here.

The months of inventory (MOI) spiked up from 5.20 to 6.97 when more sellers put their homes on the market. In just one month, the relatively balanced housing market for Richmond the past 8 months tipped over into a buyer market. The MOIs for the three housing types, all turned higher, with detached homes and condos leading the way. More new listings are expected to be listed for sale in Richmond in the coming weeks. 

It is doubtful that home sales in Richmond the next few weeks will keep pace to absorb similar number of homes coming into the market, Excessive build-up in supply will result in home sellers coming under pressure to sell their homes in a weak market. With rather spotty demand, weak sellers are expected to capitulate leading the way to lower home prices for 2014.

Richmond housing market outlook

Home sales in Richmond for February and March are expected to pick up with better weather conditions. Seasonally, the next 3 months are expected to experience increased buying activities. Homes that are realistically priced and in good move-in conditions are expected to sell readily.

Detached homes in Richmond under $1,000,000 are enjoying reasonably good demand – MOI of 4.4 months. Older homes with good lots over 8,000 sq ft are in good demand. The higher demand for homes in this segment could be due to home buyers preference for single family homes, high interest from home builders and long-term investors betting on future gains from such properties. 

The current statistics for Richmond detached homes are:

  • Single family detached homes listed for sale – 769 homes.
  • 225 (29%) of these homes are under $1,000,000
  • 544 (71%) of these homes are over $1,000,000.
  • With average sales of 51 homes a month, the MOI for homes below $1,000,000 is 4.4.
  • The average past 3 months sales for homes over $1.0 million was 56 homes.
  • MOI for detached homes over $1,000,000 is 9.71 months of supply.
  • Total single family detached homes for sale over $1,500,000 – 319 homes
  • The average 3 months sales – 20 units with 15.95 months of supply.

For more information on Richmond real estate, you are welcome to contact James Wong at 604-721-4817 or email James.

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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