2006 and 2007 Sales Summary
March 30, 2008
Richmond Housing Market - Strong Growth for 2006 and 2007
The following table below summarized the Richmond 2006 and 2007 home sales based on statistics gather by the Real Estate Board of Greater Vancouver:
| Housing Type | Total 2007 Sales | Av. Per Month | Total 2006 Sales | Av. Per Month |
| Detached Houses | 1798 | 150 | 1596 | 133 |
| Townhouse Houses | 1495 | 125 | 1396 | 116 |
| Condos/Apartments | 2056 | 171 | 2027 | 167 |
| Total | 5351 | 446 | 5019 | 416 |
The strong Canadian economy, low interest rates environment and positive home buyer sentiments had sustained the bullish housing market in Canada for the past 6 years. Housing analysts expect the 2008 Greater Vancouver housing market to remain positive, projecting price further gain of 5% to 8% for the year.
The strength of the Greater Vancouver and Richmond housing market in particular can be measured by calculating the “absorption rate” which is a measure of supply and demand. It is expressed in months to sell all the units currently for sale. It helps both buyers and sellers understand what’s going on in the market.
When listings take a long time to sell, prices will drop. When there is not much supply, buyers are willing to pay more, prices will rise.
Taking the total active listings divide by the sale for the month the absorption rate is determined. According to generally accepted figure, 6 months supply is considered a balanced housing market. Over 6 months supply represents a buyer’s market, and under 6 a seller’s market. Click here to view Richmond’s recent housing market activities and price trend for February, 2008.
The list versus sold ratio or “absorption rate” as mentioned above will give a fairly good idea as how homes prices will be affected by the market demand for housing.
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Greater Vancouver Real Estates
March 20, 2008
The high level of new home construction and completion above 20,000 units were previously achieved in late 1989 and mid 1994. By the year 2000, construction activities dropped to a low 8,000 level. Read more
CMHC Housing Report
March 20, 2008
CMHC Housing Report - Canadians tackling housing debt
Matthew Jay, Canwest News Service, Published: Thursday, March 20, 2008
Canadians who have recently purchased, renewed or refinanced a mortgage want to quickly pay off their debt, a survey by the Canadian Mortgage and Housing Corporation indicated Wednesday.
Seventy-eight per cent of respondents said they wanted to pay their mortgages off as fast as possible and one-third said they had made a lump-sum payment toward that end.
The results indicate a strong tendency amongst Canadians to take advantage of opportunities to aggressively tackle housing debt, a sign homeowners are “fundamentally cautious” about their housing debt, CMHC said
Eighty-four per cent of homeowners who are making weekly or biweekly payments on their mortgages are doing so at an accelerated rate in order help to shorten their amortization period, according to the mortgage insurer. Read more
Richmond Housing Report - February 2008
March 18, 2008
Richmond housing Report - February, 2008
Source: RealtyLink Online, Listings versus Sales
| Housing Type | Active Listings | Feb. Sold Listings | Av. 3 months | No. Months | Average Price |
| Detached | 500 | 130 | 115 | 4.35 | $835,000 |
| Townhouse | 248 | 104 | 75 | 3.30 | $450,000 |
| Condominiums | 580 | 144 | 128 | 4.53 | $345,000l |
Market Action> Below 6 months > Sellers Market > Price Trend - Up
The Richmond housing market remains very active and bullish for February 2008. The market for older townhouses between $385,000 to $425,000 is very strong. there is a pent-up demand for such properties. Older homes on large lots in prime Richmond locations are also in good demand, driving prices to the $800,000 level.
Using 6 months inventory as a measure of market balance, it is easy to understand that the Richmond housing market has more up-side potential. Richmond townhouses are in relatively higher demand than detached houses and condos.
Richmond detached houses - market update for February 2008
Source: RealtLink Online Listings Versus Sales and Price Trend
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The number of active listings and sales picked up in February after the lower seasonal listings and sales over the past 3 months. The active listings and monthly sales ratio at around 4.30 months is considered a Seller market with supply-demand pressure for house prices to move higher.
The monthly average and median price for February remain positive and registered higher values than the previous months. There was a substantial jump in the average selling price from around $780,000 to around $835,000.
Market For Million Dollar Mansions
The demand for older homes on large lots over the past few weeks were very strong as more home builders are actively buying such properties. Such building lots when eventually new homes being built on them are priced and sold at $1,600.000 to $1,800,000 range.
Based on sales activities and multiple offer situations mainly from Richmond new home builders, older homes with lot size between 8,000 to $9,000 in the the popular Broadmoore sub-division were snatched up at prices between $750,000 to $815,000. Similar older homes on large lots on arterial roads and those less favorable locations facing “T” junctions are priced much less at $650,000 to $715,000 range.
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Vancouver Housing Market
March 6, 2008
Bullish Vancouver housing market
Pent-up demand, population growth, tight inventory levels, and the longest economic expansion since World War II collectively fueled one of the best decades on record for residential real estate in Canada. Since 2002, house prices rallied attracting even more buyers and investors into the market. House prices more than double in the major city centers in the Greater Vancouver area.
The strong price gains over the past few years have resulted in the Vancouver housing market beyond the reach of the average home buyers. Many home buyers have to be contented with buying the more affordable condos and townhouses. Read more
