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.

Click here to return to the Homepage.

Posted by jameswong | Filed Under 2006 and 2007 Sales Summary, List/Sale Report