Richmond Home Prices
Charts Source: REBGV
Richmond Detached Homes
Below is an assessment on the run up in Richmond's home prices during the past 10 years from 2007 to early 2017.
The HPI price gain for Richmond detached homes from early 2007 to end 2015 was growing at a compounded rate around 7%, or roughly $55,500 a year. But, the gain in home prices for single family detached homes in Richmond from 2015 to end of December 2016, showed a very spectacular lift off - the gain during this short period was between $400,000 to $500,000.
Richmond townhouse HPI price followed a very similar price gain pattern foor singe family detached homes in Richmond.
Similarly, the HPI price for Richmod townhouses from 2007 to the end of 2015 was around 4%, or roughtly incresing at just under $20,000 a year. In 2016, over a 12 months period, Richmond HPI price gained about $150,000.
The four years from 2007 to 2011, Richmond HPI price gained around 4% a year. But, from 2012 to the thrid quarter of 2015, Richmond HPI price was flat. Richmond condos caught on by September 2015, and spiked up in demand and condo prices gained over $80,000 in 15 months.
What's The Risk For Richmond Home Prices Collapsing?
There are general agreement that interest rates for 2017 are expected to be higher. If the increase in interest rates is within 1% to 1.5%, it will have an impact on demand for homes. Although sales had dropped significantly, detached home prices were reported to have softened. But, the prices for townhouses and condos were holding well and there were not signs of prices coming down.