The Richmond condo market is rocketing into the hot zone.
Mirroring the trend across the region, the imbalance between supply and demand in the city’s condominium market is creating heated home buyer competition, according to the latest figures from the Real Estate Board of Greater Vancouver (REBGV).
This week, the REBGV reported that residential property sales in the region totalled 3,893 in June 2017 – an 11.5-per-cent decrease from the 4,400 sales recorded in June 2016 (which was an all-time record), and a decrease of 10.8 per cent compared to May 2017, when 4,364 homes sold.
“Two distinct markets have emerged this summer,” said Jill Oudil, president of the REBGV. “The detached home market has seen demand ease back to more typical levels, while competition for condominiums is creating multiple offer scenarios and putting upward pressure on prices for that property type.”
In June 2017, the benchmark price for a Richmond condo rose 27.2 per cent compared to this time last year, to $572,600. The benchmark price for a townhouse in the city is now $766,200 – up 8.8 per cent over June 2016.
Single-family detached homes now sit at $1,650,100 – a 2.8-per-cent decline over last year.
“Home buyers have more selection to choose from in the detached market today, while condominium listings are near an all-time low on the Multiple Listing Service (MLS),” Oudil said. “Detached home listings have increased every month this year, while the number of condominiums for sale has decreased each month since February.”
There were 5,721 detached, attached and apartment properties newly listed for sale on the MLS in Metro Vancouver in June 2017. This represents a 2.6-per-cent decrease compared to the 5,875 homes listed in June 2016, and a 5.3-per-cent decrease compared to May 2017, when 6,044 homes were listed.
The total number of properties currently listed for sale on MLS in Metro Vancouver is 8,515 a nine-per-cent increase compared to June 2016 (7,812,) and a 4.2-per-cent increase compared to May 2017 (8,168).
For all property types, the sales-to-active listings ratio for June 2017 is 45.7 per cent. By property type, the ratio is 24.5 per cent for detached homes, 62 per cent for townhomes, and 93.2 per cent for condominiums.
And that’s putting pressure on condo prices.
“Market conditions will vary today depending on area and property type,” Oudil said.
The MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $998,700. This represents a 7.9-per-cent increase over June 2016.
Sales of detached properties in June 2017 reached 1,320, a decrease of 15.5 per cent from the 1,562 detached sales recorded in June 2016. The benchmark price for detached properties is $1,587,900. This represents a 1.4-per-cent increase from June 2016.
Sales of apartment properties reached 1,905 in June 2017, a decrease of 9.6 per cent compared to the 2,108 sales in June 2016.
Last month’s sales were 14.5 per cent above the 10-year June sales average.
The REBGV reports on residential property sales in the region, which includes Richmond, Vancouver, Burnaby, New Westminster, the Tri-Cities, Pitt Meadows, Maple Ridge, South Delta, Whistler, Sunshine Coast, Squamish, and West and North Vancouver.
For more information on real estate, statistics, and buying or selling a home, visit REBGV.org.
