Richmond Housing Report: November

January 2, 2019

Richmond Housing Report: November, 2018

Novermber home sales for Richmond continued to remain depressed, posting one of the worst months for Richmond home sales the past 5 years. The current housing market condition is considered as in a market downturn. The sales of Richmond detached homes had suffered more than 1.5 years of slow sales and gradual erosion in their selling prices.

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Compared to townhouses and condos, detached homes had been under seling pressure for the past 1.5  years, when many sellers were selling their homes at huge discounts from their asking prices. There isa high likelyhood of townhouse and condo sellers taking much higher discounts from their listing prices as their sales  also slowed considerably

At this time, both townhouses and condos are holding on to their prices. Many recent sales were reported to be some 3% to 5% lower than their peak prices. On a year-over-year basis, both townhomes and condos were selling around 4% to 5% higher than a year ago.

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Deteriorating Market Demand

The current soft market conditions are expected to last for some time. Thight lending starndards and the imposition of stress test for mortgage approval had resulted in buyers getting approved for much lower loan amounts they need to complete their purchases. With buyers getting more cautious and waiting on the sideline to see how the market is going to turn out, motivated home sellers are expected to give in and accept deeper discounts to sell their homes.

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Richmond Home Sales Report

January 2, 2019

November Richmond Housing Report

Richmond home sales for Richmond could be the worst month in Richmond’s housing sales record posting just 177 homes compared to the past 10 years sales averaging around 400 homes. Detached home sales at 51 units was 32% lower compared to 75 units sold in Novermber, 2017. Compared to a year ago, Richmond’s benchmark detached home price at $1606,900 was 7.2% lower than 2017’s price of $1,731,800.

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Both townhomes and condo sales for the month was less than 50% of the sales recorded in November, 2017. Although home prices for townhouses and condos in Richmond had gradually slide lower the past few months, both were 4.3% and 4.9% higher than their prices a year ago respectively.

Richmond home sales Novermber

Days On Market and Sales-to-active Ratio

Richmond detached home sales had been sluggist for the past 1.5 years, with the average days on market in the 60 days range. The lack of buying interest and home sellers motivated to sell, had resulted in the average benchmark price for Richmond detached homes  welling at 7.2% lower than a year ago.

Richmond home sales days on market

Both townhouses and condos sale-to-active ratios were now at around 10% which is at the lower range of a balanced market. The current tight lending requirements and stress test imposed by the government on mortgage lending continued to depress the demand for homes. Unfavourable home sales reporting from the media and industry experts in recent months had resulted in home buyers getting very cautious to wait out the market for more favourable news.

The lack of buying interest, elevated home prices and tight lending conditions are expected to continue to exert sales and pricing pressures on the market. The downturn in housing sales and prices could last for a while as the overall market conditions are expected to persist for sometime.

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