Richmond Housing Report - January 2011
February 19, 2011
Richmond Housing Report - January, 2011
Source: RealtyLink Online
|Housing Type||Active Listings||January Sales||Av. 3 mth||No. Months||Average Price|
Richmond’s total homes sale for January, 2011 totaled 360 units was 7% higher than the previous month sale of 338 homes. The supply of detached homes, townhomes and condos/apartments increased slightly from 1,015 units the previous month to 1,105 units for the month. The overall supply is still very low,and at less than 50% during the height of 2,130 homes in May, 2010.
The *months of inventory for January 2011 at 3.04 months was a slight improvement compared to 2.82 months the previous month. The supply of homes is still very low especially for detached homes and townhomes. A very strong market developed over the past 2 months for detached homes. Multiple offers continued for detached homes bidding up selling prices for most newly listed homes tens of thousands dollar higher than their listing prices. The market activities can be described as frantic and this could be the first time in history Richmond detached homes had such a huge demand from home buyers. The average price jumped from around $950,000 in November to $1,100,000 in December, 2010 and increased further to $1,150,000 this month.
The very strong demand for both detached homes and towhomes in Richmond is expected carry over to the summer. The slight increase in mortgage rates is not expected to dampen the market as rates are still very low to deter home buyers. Unless more homes are listed for sale in the coming months, the upward trend for home prices is expected to be maintained.
* 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.
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