Richmond Housing Report For January, 2013
February 16, 2013
Housing Report for Richmond, January 2013
Data Source: Real Estate Board of Greater Vancouver
|Housing Type||Active Listings||Jan Sales||Av. 3 mth||No. Months||Average Price|
Home sales in Richmond for January, 2013 at 165 homes improved slightly, but total sales were at a depressed level compared to the past 10 years’ January sales. Price discounting continued as motivated sellers tried to attract buyers, while many homes went expired unsold or taken off the market. The month ended with just 1,900 homes for sales. This is about the same level for January, 2012.
With lower inventory and weak sales, the overall months-of-inventory (MOI) for the Month was 10.50 which was relatively unchanged compared to 10.24 months of supply in December. The market supply / demand situation remains in favour buyers who were in no hurry to buy. The market activities picked up, but most buyers were holding off buying as they were expecting lower prices in the coming months.
Richmond real estate market outlook
The busy spring season is just around the corner. But, due to the large price gap between sellers’ asking prices and buyers willingness to buy, 2013 will likely pass us by with no meaningful recovery from the poor sales the past 10 months. There are more homes expected to be listed for sale the next 3 months. The lack of buying interest will result in sellers who need to slash their prices.
The Chinese New Year effect proved to be a non-event for 2013. While viewing activities were reported to have increased significantly, actual sales were hard to come by.
With the large number of homes listed for sale in Richmond in 2013, weak demand will continue to negatively impact the market. The expected surge in listings and moderate sales the next few months will result in the MOI reversing to surpass 12 months of inventory. Richmond’s housing market will continue to suffer due to high inventory and below average sales.
Further erosion in home prices in Richmond for 2013 can be expected as poor market sentiment is working against a housing market recovery in Richmond.
Tough challenges for Richmond home sellers
The stand off between Sellers and Buyers will not be solved soon, resulting in a long drawn out impasse. In a situation like this the weak holders are the home sellers who are forced by circumstances to give in. As home prices decline, more buyers are convinced to continue staying on the side-line. The process could take a few years to play out, until some stability and confidence return to the market.
For more information on Richmond real estate, you are welcome to contact James Wong at 604-721-4817 or send James an email.
* 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.
Disclaimer: The opinions expressed herein are not intended to be a forecast of future events, a guarantee of future results or real estate market patterns, and are subject to change based on market and other conditions. The information and discussion on topics of interest are not intended to be a comprehensive discussion of the strategies or concepts mentioned.