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What Do Expect Of Richmond Housing Market?


Richmond's housing market over the past 3 months had dropped below 300 units - to be more precise the aveage sale was 266 units from August to October, 2011. When compapred to the past 4 years, the weak sale could spell the beginning of a long overdue decline in home prices.

Will home prices drop sharpely?

The Greater Vancouver pricing trend as shown here is showing the housing market already peak, and possibly on the decline due to weakening sales.

October

The table below for Richmond's homes sales including detached houses, townhomes and condos showed an alarming drop in sales over the past 3 months.

Year - Aug to Oct Average 3 mth Sales (units)
2011 266
2010 340
2009 560
2008 233
2007 448

In 2008, the market suffered a 15% price decline due to the credit crunch when home prices dropped from April 2008, recovering sharply after February, 2009.

Will home prices drop sharpely or moderately? And, what could happen the next 6 months or 12 months?

The delay in implementing the abolishment of the HST for another 15 months is affecting many new developments. Some housing developers were reported to resort to absorbing the HST completely or partially to sell their homes.

With Richmond's inventory for homes hovering at 8.43 months of supply, many home sellers are already slashing their prices to attract buyers.

Good buying opportunity?

For home buyers, the market is favourable for them to shop and find the homes that's right for them. Definitely, there are a lot more choices, and sellers are willing to negotiate on their selling prices.

My take, home buyers should get ready, and if they right homes come along, they should serously consider making a move. For now, keeping track on the supply and demand situition will help them to monitor the market.

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Mortgage Rates At All Time Low


My Assessment For The Real Estate Market for 2012

I just received an email mortgage rates update from a Mortgage Broker from Dominion Lending. Judging from the ultra low mortgage available to home buyers, the real estate market can be expected to be sustained and do reasonably well for 2012.

Terms Bank Rates Our Rates
6 Month 4.45% 4.40%
1 YEAR 3.50% 2.89%
2 YEARS 3.85%

2.49%

3 YEARS 4.35% 2.89%
4 YEARS 4.79% 2.99%
5 YEARS 5.19% 3.29%
7 YEARS 6.35% 4.49%
10 YEARS 6.75% 4.79%
Rates are subject to change without notice. *OAC E&OE
Prime Rate is 3.00%
Variable rate mortgages from as low as Prime - .30% 

Recent Weeks' Real Estate Activities

Other than some townhomes and condos selling at a slower pace, older detached homes under $1,000,000 are attracting considerable buyers interest. Homes priced reasonably are selling well, though at price point some 3% to 5% lower than the peak months back in March and April, 2011.


It is difficult to see home prices making another new height anytime soon. The reason being the stock markets around the the world suffered heavy sell off, and investors and home buyers are more cautious about the future for real estate.

The poor economic outlook and trouble in the financial markets in US, EU, Asia and other part of the world will deter some buyers making their puchases. However, home prices will likely be maintained at current level as interest rates are not expected to spike up anytime soon.

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