2007 to 2010 Sales Summary
March 30, 2008
Richmond Housing Market - Historical Sales
The following table below summarized the Richmond 2007 to 2010 home sales based on statistics provided by the Real Estate Board of Greater Vancouver:
|Housing Type/Year||2007 Sales/Av.||2008 Sales/Av.||2009 Sales/Av.||2010 Sales/Av.|
The strong Canadian economy, low interest rates environment and positive home buyer sentiments had sustained the bullish housing market in Canada for the past 5 years. Housing analysts expect the 2011 Greater Vancouver housing market to remain positive, projecting a moderate price gain of 3% to 4% for the year.
Supply And Demand For Homes in Richmond
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. A supply/demand ratio of 6 months inventory is considered a market in balance - where pricing pressure is not forcing home prices going up or down.
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. 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.
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.