Richmond Housing Report For April, 2014

May 18, 2014

Housing Report for Richmond, April 2014

Data Source: Real Estate Board of Greater Vancouver

Housing Type Active Listings April Sales Av. 3 mth No. Months Median Price
Detached 810 129 136 5.96 $998,000
Townhouse 405 89 81 5.00 $520,000
Condominiums 995 116 117 8.50 $326,000
Total Sales 2210 334 334 6.62

Richmond detached homesRichmond townhouses Richmond condos

Home sales in Richmond for April, 2014 totaled 334 units were about 2% higher than home sales recorded a month ago. In spite of better weather conditions, the high expectation of improved sales, the increase was a disappointment to many people in the real estate industry. There was a net increase of 120 more homes compared to the month before, pushing active listings from 2,090 the previous month to 2,210 at the end pf April. The active listings for the month was just 1% lower than a year ago at this time with 2,225 homes listed for sale. View Richmond homes for sale here.

The months of inventory (MOI) for the 3 housing types in Richmond were at about the sale levels as the month before. The overall April MOI at 6.82 was a slight increase compared to 6.74 in March. The detached homes segment under $1,000,000 fared much better, with just 3.8 months supply of homes. The market for condos in Richmond is under pressure, and condo sellers had to compete for buyers as there was far more supply than demand. The MOI for condos at the end of April remained high at 8.5 months of supply. The lower than expected spring sales is pointing to average activities. With no major changes in interest rates, and external economic events, the balance of 2014 could follow sales recorded in 2013.

Richmond housing market outlook

Other than the condo market which is experiencing more homes competing for buyers, the supply and demand for townhouses in Richmond is healthy holding at 5.0 months of supply. The demand for detached homes over $1.5 million is weak. There are far more sellers than buyers currently, with the supply of homes over $1.5 million showing 14.8 months of sully. Not many home sellers are slashing their prices, and many are holding on to their prices, hoping to sell their homes to buyers who are willing to meet their prices.

 Detached homes in Richmond under $1,000,000 are in  demand, with MOI of 3.8 months. Older homes with good lots over 8,000 sq ft are in good demand as these homes are bought for by investors, with the hope of ripping future gains in property values. Home builders are actively buying such properties as they enjoy good profit margin if the new homes are successfully sold.

The current statistics for Richmond detached homes are:

  • Single family detached homes for sale – 865 homes, averaging 136 sales a month – around 6.4 months of supply.
  • 262 (30%) of these homes are under $1,000,000, at a sale pace of 69 a month – 3.8 months of supply.
  • 254 (70%) homes are between $1.o to $1.5 million, with average sales of 44 homes a month – 5.8 months of supply.
  • 354 homes are over $1,500,000 with average sales of 24 homes a month – 14.8 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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