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November 2018 Richmond Housing Report


Richmond November Homes Sales

Richmond's November home sales suffered another month of double digit sales decline with detached homes and townhouses recording a drop of over one-third in saes compared to a year ago. Richmond Condos in November suffered the most, cutting the 2017 condo sales by more than a half from 190 to just 84 units. The HPI detached home price for Richmond continued to decline in price for November, posting $1,606,900 which was 7.2% lower than a year ago. Although townhouses and condos had now reached the lower band of a balanced market, they managed to post sales prices 4.3% and 4.9% higher than a year ago respectively. 

richmond housing market summary

MLS® QUICK SEARCH:  > Richmond Detached Homes <   > Richmodn Townhoses <   >Richmond Condos <

Incresing Days On Market

Since the middle of 2017, buying interest for Richmond detached homes was visibly absence and demand drifted lower into a buyer market. The days on market figures for detached, townhouses and condos continued to move higher signifying dropping buyer interest and slowing housing demand. The average HPI price for detached homes continued its decline from its peak price of $1,770,000 in April, 2017. The November HPI price for Richmond detached homes was $1,606,000 which is 7.2% lower than a year ago.  richnd november housinbg report 

Sales To Active Ratio Deteriorating

The sales-to-active ratios for both townhouses and condos are now approaching the lower bands of a balanced market. The continuation in the current tight lending standards imposed by Canadia Banks will depress sales activities and home prices. The current housing downturn is expected to last for some time before buying interest return to the market.

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October 2018 Greater Vancouver Housing Market Update


October 2018 Greater Vancouver real estate market video news update, Oct 18, 2018

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region dropped 34.9% compared to October 2017. Total sales for the month were 26.8% below the 10-year October sales average.

Home sale activity across Metro Vancouver remained below long-term historical averages in October.

The current supply has returned to the level about four years ago.

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 12,984, a 42.1% increase compared to 9,137 in October 2017 and a 0.8% (13,084) fewer homes for sale compared to September 2018.

Tighter mortgage rules and declining single-family home sales and prices are alredy sending shock waves to the market. Waning demand for townhouses and condos the past few months are reported across the lower mainland of Vancouver and Fraser Valley. The big worry is what happens to home sales and prices if a recession hits in the next two or three years? Could home prices fall significantly and turn to a recession?  

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Canadian Housing Report & News


Are Australian house prices going to join the Canadian Club? - NEWS.com.au

Sun, 11 Nov 2018 20:15:00 GMT

Housing crash — is it time to panic? Remember — in a market where people expect price growth, even a short fall can make a big difference. The relatively brief ...

 

Read more ...

 

Prices easing but Canada's housing market still 'highly vulnerable': CMHC - CTV News

Thu, 25 Oct 2018 17:58:38 GMT - Financial Post

Prices easing but Canada's housing market still 'highly vulnerable': CMHCCTV News... a decline in prices. Despite these factors, markets in Toronto, Vancouver, Victoria and Hamilton are still considered to have a “high degree of overall ...

Read more ...

 

 

Canadian Real Estate Prices Turn Negative According To The US Federal Reserve - Better Dwelling

Fri, 19 Oct 2018 13:40:27 GMT

Better DwellingCanadian Real Estate Prices Turn Negative According To The US Federal ReserveBetter DwellingSince prices were below the peak, they weren't in “bubble” territory. In a more technical sense, they were still experiencing the ..... Canada' ...

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Vancouver & Richmond Housing Report


October Greater Vancouver Home Sales Report

Home sale across Greater Vancouver remained below long-term historical averages in October. The todate home sales across various municipalities in Greater Vancouver were about 30% lower than a year ago.

For the month of OCtober, Greater Vancouver residential home sales totalled 1,966 was 35% lower than 3,022 sales recorded in October 2017. Compared to last month sale of 1,595 homes, it was 23% higher.

The October sales were 26.8 per cent below the 10-year October sales average.

oct1

More Supply Of Homes Slower sales had resulted in higher inventory - levels that were seen four years ago. Home sellers are facing pricing pressure to cut prices to sell their homes. Listings for the month jumped 7.4% to 4,873 compared to 2017, but 7.7% less homes listed compared to last month. Year-over year, the total number of homes listed for sale in OCtober at 12,984 units is 42.1% higher.

rebgvfvreb sales

Market Outlook For 2019 & 2020

The real estate market has entered a down cycle after over 10 years of rapid growth in home sales and rising prices. Since the peark of 2016, the market showed weakness in detached home sales and declining prices that acclerated the past 12 months. Multi-family homes in recent months experienced slower sales and home prices were weakening. Signs of more aggressive price discounting were noticed the past 2 months.

The housing market for Greater Vancouver and Fraser Valley are expected to continue to decline in demand due to higher interest rates and much tougher for home buyers to obtain financing for mortgages. How much lower in home sales and price decline are hard to predict as current market sentiment is subdued and no panic seller deparation to sell has been reported yet. 

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Land Assembly: Fraser Valley & Vancouver


Land Assembly

What is Land Assembly? A land assembly is combining adjacent lots into a larger land parcel for the purpose of developing the land into a new development.

shell

Why Land Assembly is Necessary? The lack of suitable large land parcel in Greater Metro Vancouver and Fraser Valley has resulted in many municipalities and developers looking for redevelopment sites. The assembled lots are rezoned from low density single family lots into multi-family zoning for higher density townhouse and condo developments.

Land Assembly Is a Windfall For Owners? As part of a land assembly, home owners are able to sell their homes at prices that land parcel generate the best and highest use after rezoning.

Official Community Plan (OCP). A land assembly is prompted by the OCP for the area as proposed by a local municipality that controls the redevelopment plan for the area. The timeline for a land assembly to rezoning and issuance of a building permit can take from 1 to 3 years.

Below Is The Land Assembly Process

- Listing and marketing the land assembly to a potential Buyer/Developer

- Offer negotiation, acceptance and subject removal which include plan Submission, geotech & environmentals, arborist study, etc.

- Subject removal and complation

View some of the land assembly sites available for sale in Greater Vancouver and Fraser Valley.

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New Listing 306 - 5411 Arcadia Road, Richmond, BC


R2213795 - 306 - 5411 Arcadia Road, Richmond, BC, CANADAView my new listing for sale at 306 - 5411 Arcadia Road, Richmond and currently listed at $285,000.

SPACIOUS TOP FLOOR 750 sq ft one bedroom condo in STEEPLE CHASE. Generous size living room and bedroom, stainless steel kitchen appliances, new paint and new laminated wooden floor. Superb central Richmond location within walking distance to Kwantlen University, Save-On Foods, Lansdowne Mall. Amenities include outdoor swimming pool, secured under the building parking, no rental restriction, but pets are not allowed. Shared laundry is on the same floor of the condo. Great for investment or first time buyer.

April Richmond Housing Report


Richmond Housing Report For April 

Source: REBGV

sale list ratio

The sales for Richmond's detached homes for April 2017 improved further compared to the previous month. The sale to list ratio for detached homes edged up above 20%, to cross into the Seller Market, joining townhouses and condos in the Seller Market territory.

The median home price for Richmond edged up to around $1.6 million from $1.47 million. The decline in detached home prices since the middle of 2016 appeared to be arrested with the gain in April's median price. 

The median price for Richmond townhouses continued to climb after 3 months declined in the median price around the September and October period. Buying interest remain high for Richmond townhouses at current median price around $750,000. 

Richmond condos remain the most active market segment with multiple offers for most newly listed condos. There is a real shortage of condo listings to satisfy the high demand for condos in Richmond. There are no signs of the situation for Richmond's supply of resale condos surging to satisfy the high demand for condos for the next few months. 

 

For more info about Richmond's housing market, kindly contact James Wong at 604-721-4817.

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New Listing 10500 Railway Avenue, Richmond, BC


R2147328 - 10500 Railway Avenue, Richmond, BC, CANADAView my new listing for sale at 10500 Railway Avenue, Richmond and currently listed at $1,550,000.

Front access carport from Railway, Richmond arterial road OCP allows redevelopment under “compact lots and coach house development” for duplex or SFH with a coach house to be built. Great building lot for a new home with lane at the back of the property. Owner occupied 2-level home with suite at lower level, 6-year old roof, 2 kitchens; one on main floor and another at lower level. Selling mainly for lot value and seller prefers 2.5 to 3 months for completion. At least 5 hours notice required for showing appointment.

Richmond Housing Report


Richmond January Housing Report

The housing market activities in Richmond slowed considerably since late September, 2016 and the sale pace for single family detached homes showed a significant drop in buying activities. However, detached home prices didn't show much downward price decline although the sales to active ratio remained in Buyer's Market for 6 months. 

>> You can find Richmond detached homes for sale using this link. 

jan sales

Both townhouses and condos enjoyed elevated prices which showed a significant jump in their average selling prices since early 2016. Most 3-bedroom townhomes within the 3 to 15 years age range are selling from $650,000 to $800,000 range for the larger units with over 1,400 sq ft living areas.

Richmond condos continued to receive a lot of buying interest and resale 2-bedroom condos between 3 to 10 years are now selling from $450,000 to $800,000 for the newer concrete condos around the City Center of Richmond.

If you like to have more info on any of the homes for sale, or like to have a discussion on your real estate needs, you are welcome to contact me (James) at 604-721-4817.

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Richmond Home Prices


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. 

Richmond HPI Price for detached homes

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 Townhouses

Richmond townhouse HPI price followed a very similar price gain pattern foor singe family detached homes in Richmond. 

Richmond HPI Price for townhouses

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.

Richmond Condos

Richmond HPI price for condos and apartments

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. 

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