With interest rates climbing, Richmond home sales continued to drop in June, according to the latest report from the Real Estate Board of Greater Vancouver (REBGV).
The total number of homes sold in Richmond was 337 in June, which is a significant decline compared with June 2021 when 472 home sales were completed, according to REBGV.
Meanwhile, Richmond’s single-family home benchmark price fell to $2.1 million last month. That represented a 0.8 per cent drop from May and a 1.6 per cent decrease over the last three months.
Richmond’s townhouse benchmark price also fell to $1.1 million last month - a 1.7 per cent drop from May and a 0.7 per cent decrease over the last three months.
Although average home prices have declined in Richmond, there are still some exceptions.
Last month, a five-bedroom, six-bathroom single-family home at 4980 Groat Ave. was sold for 1.8 million, which was $420,000 above its listed price and $300,000 above its July 1, 2021 assessed value, according to BC assessments.
Local realtor Gary Louis told the Richmond News he couldn’t comment on specific cases, but he could confirm there is still demand for properties priced well and in a desirable location.
“When interest rates increase, that doesn’t necessarily mean it will cut back demand. There are still people who want to buy,” said Louis.
“What happens is that some people looking for a $1.7m house might consider a $1.5m house.”
Louis added that there is a noticeable price discrepancy in high-end properties, but in the lower end of the market, the price range is usually very stable.
