Richmond Housing Report For August, 2014

September 20, 2014

Housing Report for Richmond, August 2014

Data Source: Real Estate Board of Greater Vancouver

Housing Type Active Listings August Sales Av. 3 mth No. Months Median Price
Detached 815 132 152 5.36 $1,155,000
Townhouse 415 110 103 4.03 $551,000
Condominiums 1005 122 137 7.33 $349,000
Total Sales 2235 364 396 5.64

Richmond detached homesRichmond townhomes
Richmond condos

Home sales in Richmond for August, 2014 totaled 364 units were 12% lower than the previous month’s sales of 406 homes, but 7% higher than the 339 homes sold a year ago. August registered a second month decline in sales from the peak sales of 420 homes recorded in June, 2014. The sales in next 3 months may continue to trend lower during the autumn and winter months. Total active listings eased lower from the month before at 2,370 listings to 2,235 listings which was about 6% lower. View Richmond homes for sale here.

The months of inventory (MOI) for the 3 housing types in Richmond improved slightly from 5.78 to 5.64 months of supply. Overall, the townhouses remained relatively tight in supply, while detached homes in Richmond under $1,000,000 continued to enjoyed good demand from home buyers. The resale condo market in Richmond with MOI of 7.33 continued to experience pricing pressure due to fairly high inventory. And, this is not counting new condos that are available as presale condos in Richmond. Sellers for resale condos have to adjust their selling prices to attract buyers.

Richmond housing market outlook

Other than condos being under pressure to compete for buyers, the supply and demand for townhouses in Richmond are healthy when the market has just about 4.03 months supply of townhomes. The demand for detached homes over $1.5 million is weak with MOI showing 12 months of supply. But, it is a vast improvement compared to the past 2 months around 15.5 months of supply.

The most active market for detached homes in Richmond are homes under $1,000,000. Older homes with large lots over 7,500 sq ft in the westside of Richmond continued to enjoy good buying support from new home builders and investors. These homes with large lots are bought by new home builders to be turned into new housing stock, or investors buying and holding them as rental properties.  

The current statistics for Richmond detached homes are:

  • Single family detached homes for sale – 815 homes, averaging 150 sales a month – around 5.4 months of supply.
  • 222 (27%) of these homes are under $1,000,000, selling around 69 homes a month – 3.2 months of supply.
  • 246 (30%) homes are between $1.0 to $1.5 million, with average sales of 48 homes a month – 5.1 months of supply.
  • 350 (43%) homes are over $1,500,000 with average sales of 34 homes a month – 10.3 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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