Richmond Sellers Holding On To Their Prices

January 21, 2013

A market ‘Standoff’

terranovahse290.jpgLike in other parts of Greater Vancouver, Read more

Richmond Detached Homes – Sale price Versus City Assessment value

January 20, 2013

Richmond mls homes for sale

A stand-off between home buyers and sellers

A sample data extracted from the Real Estate Board of Greater Vancouver’s home sale for detached homes in Richmond recently revealed a fast deteriorating housing market. During the period from Dec 01, 2012 to Jan 15, 2013, detached homes in Richmond between 5 to 30 years old with lot sizes between 5,000 to 8,000 sq ft showed that nine out of ten of these homes were sold below their city assessment values:

1. Property Address Sold Price ($) Assessment Value ($) % Below City Assessment
1. 5320 Francis Rd 650,000 775,000 -11%
2. 10151 No 1 Rd 877,500 916,000 -14%
3. 10100 St. Vincent Pl 945,000 1,005,000 -6%
4. 3571 Pleasant St 1,145,000 1,109,000 +3%
5. Lindsay Rd 1,181,700 1,362,000 -13%
6. Eperson Rd 1,194,000 1,366,000 -13%
7. Raymond Ave 1,268,000 1,489,000 -15%
8. Woodwords Rd 1,285,000 1,411,000 -19%
9. Barnard Rd 1,314,000 1,489,000 -12%
10. Herbert Rd 1,350,000 1,624,000 -17%

These homes were on average selling 11.7% below their city assessment values.

  • list price from $689,000 to $1,388,000 with average price of $1,193,200
  • sale price from $650,000 to $1,350,000 with average price of $1,120,900
  • the average sale price was 6% lower than the average list price
  • the average sale price was 11.7% below the average city value
  • the average number of days these homes were sold was 81 days 

When compared to early 2011, Richmond home prices were selling at around 10% to 15% above their city assessment values. The extend of the price drop in home prices for Richmond detached homes is estimated to be 21.7% to 26.7% below the peak prices of homes in the middle part of 2011.

Prior to May 2011,  the MOI for Richmond detached homes were under 6 months of supply. The tight supply and rapid gain in detached home prices in Richmond from December 2010 to April 2011 was reflected in the MOI for the period at 2.50, 2.70, 2.84, 3.13, 4.08 and 5.03 for December, January, February, March, April respectively. Today’s MOI for Richmond detached homes is over 12 months… a very different picture compared to 2 years ago.

A typical neighborhood like The Hollys is expected to continue to experience price decline for a few years. As cited earlier, there are just not that many home buyers available and capable of buying homes at today’s lofty prices.

A buyer for a $767,000 entry level home in the Hollys, needs to provide proof that the family has earned income of $120,000 for a loan of $613,000 (80% financing). The borrower has to provide $154,000 (20%) down payment to get the above loan, at 3% 5-year fixed term mortgage with 25 years amortization. The borrower’s monthly payment is $2,900, with an additional annual outlay of $3,500 for property tax and utilities.

Home buyers are fast learners, and they know that today’s homes can be bought at 10% to 15% below their city assessment values.  If they are not getting that type of discount, they walk. The Richmond detached home market now is created by sellers who need to sell. As shown above, sellers who are hoping to sell their homes at their city assessment values would be disappointed. There was only one out of 10 homes that was sold close to its city value! On average home sellers have to brace for more than 10% discount from their city assessment values to sell their homes.

Disclaimer: The writer assumes no liability whatsoever, for errors and/or omissions and any consequences arising either directly or indirectly from the use of information provided by this website. Any data provided are strictly for guidance and planning purposes only and may not be applicable due to ever changing market dynamics.

Return to homepage. 

Spot Light On Home Prices In The Hollys

January 16, 2013

Our housing problem is not just in the Hollys

The Hollys is a neighborhood in North Steveston with mostly entry level single family homes. These homes in the Hollys’ are mostly built on smaller lots ranging in sizes from 3,800 to 5,500 sq ft with living areas between 1,800 to 2,200 sq ft. These small single family homes were good starter homes for small family years ago. But, with prices hovering just under $800,000, these homes are beyond the reach of moct home buyers.

What used to sell in the Hollys for $400,000 in 2004, ratcheted up to reach $800,000 in 2011. 

Read more

What do expect of the housing market in Richmond?

January 13, 2013

 A stand 0ff that will not last

Vancouver West homes for saleLike in other parts of Greater Vancouver, the current real estate market in Richmond can be best described as “a stand off” between home sellers and buyers. A typical area to Read more

Will the housing market for 2013 be better?

January 12, 2013

What do expect of 2013?

The drop in active listings in the last month of 2012 was dramatic. From around 17,700 at the end of October, active listings dropped to around 12,000 at the end of December, 2012. One-third of the listings disappeared from the MLS system, mostly due to expiry and some of these listings were terminated.

The chart below showed a clear trend of declining sales as far back as 2005. The decline in sales could be attributed to high home prices getting out of reach by home buyers. Read more

Are We Heading For a Housing Market Downturn?

October 14, 2012

marta.jpgThere are strong signs for a prolong market downturn. Read more

Giving Your Home a Modern Look

March 6, 2012

Giving a room a completely new look can prove to be a substantial amount of work; many people would choose to completely redecorate, replacing old wallpaper and flooring to source a more modern appearance. This does not necessarily have to be the case; there are ways and means by which you can add a more modern look to your home without breaking the bank.

Take a Step Back

Spend a moment thinking about what areas of your home are seriously outdated; if your living room houses features such as unmistakably Read more

The Pros and Cons of 5 Common Flooring Materials

January 24, 2012

Flooring plays a key but understated role in the look of your home. An unattractive floor can cheapen the entire appearance of a room, while excellent flooring can enhance a drab room’s beauty. But it’s not all about looks. When choosing flooring, it’s essential that you pick a material that can withstand the traffic demands and climate of the room in which it will be installed. Otherwise, you may as well throw your money out the window. If you’re not sure what flooring is best for your home, take a look at this primer featuring the pros and cons of five flooring materials. Read more

Solutions for bed bugs infestation

December 10, 2011

Types Of Bed Bug Solutions

December 1, 2011

There are a number of different strategies that can be used to destroy bed bugs. The quickest and most simple method to do so is with bed bug spray. Quite a lot of the sprays are not going to cause much harm to you nevertheless there are specific issues that should be looked at before use. Having the proper information may help you get rid of the parasite safely and easily.

For more information, please visit: bed bug prevention tips. Read more

Will there be more six-storey wood-framed buildings?

March 30, 2011

An analysis of six-storey wood-framed buildings showed that saving of more than 10% in construction costs can be achieved when compared to steel frames buildings.

The report commissioned by the Urban Development Institute was prepared by BTY Group after a 2009 amendment to the BC Building Code permitted construction of wood-framed buildings up to six storeys tall.

The first such project is the six-storey Remy condominium at 4099 and 4133 Stolberg St in Richmond. Read more

« Previous PageNext Page »