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Richmond Housing Report - January 2019

Richmond HPI Price In Decline

Detached home prices in Richmond suffered a dip towards the second half of 2016 and recovered to plateau out from mid 2017 to early 2018. Slower sales in 2016, 2017 eventually gave way to a price decline in early 2018. The pace of price decline accelerated and over the past 9 months, Richmond detached homes had declined 10% from $1.75M to $1.59M.

Using the price trend/band as shown on the chart below, there is a possibility for the price to decline another 15% to touch the lower green price band. Similarly, both townhouses and condos in Richmond may correct and fall lower to touch their respective price bands. 

Falling home sales is a precursor to falling home prices. The severity of the sales drops for the 3 housing types in recent months, compared to the 10-year average sales is pointing to a more challenging situation where significant price declines could happen.


Average Price Per Square Foot

The average price per square foot decline for Richmond detached homes was more significant compared to those for townhouses and condos. The figures are affected by the proportions of new compared to resale homes. The figures being derived from MLS sales which are mostly resale units, the distortion in the figure is more for condos. It is generally known that new presale condos in Richmond are now posting at prices around $1,000 per sq ft or higher.

decrichmond cps

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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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Richmond Housing Report - October, 2016

Richmond Housing Report - October , 2016

Richmond condo sales for October remained positive with declining supply of condos over the past 12 months. It is a Buyer Market for Richmond detached homes. Total sales dropped to 61 units with sale/active ratio dropped to 8.5%.

oct 2016

Richmond Housing Report For September, 2016

Richmond Housing Report For September, 2016

supply vs demand

Richmond's real estate market reached peak prices and experienced frenzied buying fever from early March to late June of this year. The supply and demand for detached homes and townhouses slowed down gradually from late April and single family homes were experiencing exhausion of buyers willing to pay the high prices for detached homes coming onto the market. Since June of this year, single damily homes tipped over from a balanced market to a Buyer Market the past 2 months.

Richmond townhouses followed the trend for single family detached homes to rapidly decent from extreme shortage of townhomes in March to 23% sales-to-active ratio - just above the top end of a balanced market for townhomes. The market for townhouses in Richmond is expected to be in balanced market by late October, and may cross over to a Buyer market by the end of the year.

Likewise, Richmond condos followed a decline in the sales-to-active ratio from the peark in June at 70% to just over 30% in September, 2016. The ratio is projected to reach a balanced market between 14% to 20% the next 3 months.

Home Price Projection

New policy measures by the BC Government, the imposition of 15% non-resident property transfer tax and tightening of lending rules by Canadian Banks will dampen the demand for homes. A change in market sentiment will have a significant effect on home prices when buyers are not rush into making hasty offers, or compete with other buyers.

Without any major external influence like a financial collapse in the world economy, the extend of the correction in home prices in Richmond may be limited to a more normal decline of 15% to 20% from their peak prices around June and July of this year.

We will update the market situation in the coming months.

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DISCLAIMER: The owner of this website 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.