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.
Detached Houses	1798/150	1122/94	1766/147	1726/144
Townhouse Houses	1495/125	829/69	1363/114	1133/94
Condos/Apartments	2056/171	1435/120	2062/172	1863/155
Total	5351/446	3386/282	5191/432	4722/393

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.

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Posted by jameswong | Filed Under 2006 to 2010 Sales Summary, List/Sale Report