2007 to 2010 Sales Summary

March 30, 2008

Richmond Housing Market - Historical Sales

The following table below summarized the Richmond 2007 to 2012 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. 2011 Sales/Av. 2012 Sales/Av.
Detached 1798/150 1122/94 1766/147 1726/144 1707/142 976/81
Townhouses 1495/125 829/69 1363/114 1133/94 1013/84 731/61
Condos 2056/171 1435/120 2062/172 1863/155 1542/129 1101/92
Total 5351/446 3386/282 5191/432 4722/393 4722/355 2808/234

Richmond housing market outlook

The low interest rates environment and reasonably strong home buyer interest has sustained the Richmond housing market the past four years. The recovery in 2009 after the credit crunch and loosening of credit helped to sustain steady demand for homes in 2010 through 2011. Demand slackened in 2012 as home buyers pulled back buying due to adversed predictions on a drop in home prices.

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. You can follow Richmond housing market activities since 2008 using this link.

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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