Richmond’s total home sales for May, 20, 2012 at 271 units was 11% lower than the previous month sales of 306 homes.
The total number of detached homes, townhomes and condos/apartments listed for sale at the end of May at 2,680 units was 6% higher than the previous month’s total of 2,525.
The total active listings for the 3 types of homes in Richmond now surpassed the highest listings registered in September, 2008.
The supply of homes in Richmond at the end of May at 9.08 months edged higher compared to the previous month’s figure at 8.07 months of inventory. The supply of detached homes, townhomes and condos increased further in the month as more listings were put on the market. Overall, the housing market in Richmond is in favour of BUYERS, with a great selection of homes to choose from.
Daily price reductions are common as sellers adjust their selling prices to try to sell their homes.
Richmond real estate market outlook
Both the condo and detached homes markets are facing some challenges. Resale condos have to compete with presale and new homes that are competing for buyers.
Similarly, detached homes are having a tougher time to attract home buyers especially for detached homes that are over $900,000.
Homes over $1,300,000 and new homes that are over $1.80 million are not selling well. With current level of supply, price erosion is evident when more sellers are reducing their prices, and transaction prices are trending down.
Homes under $900,000 in Richmond and those priced realistically are getting more showing activities
There are 566 homes over $1,200,000 listed for sale in Richmond. With past 3 months average sale of 32 units, there are now 17.7 months supply of homes.
The slow sale pace will result in home sellers either taking their homes off the market, or allowing them to go expired unsold.
Some seller’s who must sell will have to resort to much deeper price cut to sell their homes.
Reports over the summer and into the fall from Mr. Wong should be interesting.
Perhaps even more interesting will be watching to see what sort of price cuts will be required if current conditions intensify.
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