Real Estate Blog - Selling Your Richmond Home In Today's Market

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Selling Your Richmond Home In Today's Market

Successful sale of your Richmond home in today's market require right pricing and great execution of your marketing plan. In today's market, an average home takes up to 9 months to sell! Use a marketing system that can help you sell your home in 30 days or less.

Pricing to sell

Right pricing is the key to selling your Richmond home in a buyer's market. In a soft market where house prices are dropping 1 to 2% a month, you have a better chance of selling your home by pricing it at least 5% lower than market value. Find out why - the pricing game part 1 and part 2.

Current Sales Activities

The table below summarized the past 6 months (June 01, 2008 to to-date) sales of Richmond detached homes under various price categories. The active listing figures were number of homes listed for sale as of December 25, 2008.

It is generally accepted that an absorption rate (list/sale ratio) around 6 months inventory represents a neutral or balanced market. The absorption rates as shown below confirmed that the market prices for detached homes over $500,000 in Richmond are under pressure to decline further.

Price Range	# Active Listings	# Av. sale(6 mth)	No. Months
400,000 - 500,000	11	19	3.48
500,001 - 600,000	112	72	9.33
600,001 - 700,000	175	86	12.21
700,001 - 800,00	140	67	12.53
800,001 - 900.000	76	22	20.71
900,001 - 1,00,000	50	23	12.98
1,000,001 - 1,500,000	140	57	14.74
1,500,001 - 2,000,000	45	11	24.59
2,000,001 - 3,500,000	8	2	24.24
Total Sales	757	359	12.62

Currently, homes below $500,000 were in demand and this could be attributed to these homes being more affordable. Homes in the $800,001 to $900,000 range were found to take up to 21 months to sell. Similarly, sellers of million dollar homes over $1,500,000 could take up to 24 months to sell.

In a buyer's market like today, right pricing is critical to attact buyers. A list of million dollar homes available for sale in richmond can be viewed here.

If you like to have more information on the current real estate market in Richmond, South Vancouver of Burnaby, kindly contact me at 604-721-4817 or email me.

Posted by James Wong Richmond Realtor on 12/25/2008 09:27 PM

Comments (6)

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6 Comments on Selling Your Richmond Home In Today's Market

DEC

James you always do good 'stats'.........great talking with you - will be in touch with you again by Wednesday! :-)

JAN

Hello James

Thought I would just make a comment from our last conversation on how much the market would correct. You had stated the market would only correct 30 to 35% but it seems we have past that now. In todays vancouversun http://www.vancouversun.com/business/Condos+fire+sale+offers+cent+discounts/1181254/story.html - they are already offering 40%, and this is just the beginning. Next stop 50%!

Thanks Dave for your info on "Onni's fire-sale" as reported in The Vancouver Sun. The price reduction by the developer is not very much different from home owners who are selling their homes at greatly descounted prices due to financial difficulties they are facing.

As for the market price decline the supply/demand is pointing to lower prices for this year. For the overall market trend in Greater Vancouver, you may refer to Brian Ripley's real estate charts here:

1) Canadian major cities - http://www.canadian-housing-price-charts.235.ca/canadian_housing_price_chart.htm

2) Vancouver - http://www.canadian-housing-price-charts.235.ca/vancouver_housing_price_chart.htm

You can use the peak prices from the chart and calculate home prices at 30% to 35% lower to find out the price levels where home buyers will have less fear and more confident to buy. My guess is that when home prices become more attractive to buyers, the demand for homes will increase. I am tracking the list/sale ratio to gauge the market sentiment. The market will stabalize when the list/sale ratio impoves from the current level to around 6 months supply of homes.

JAN

Its going be to very interesting this spring. But Im not sure if 30 to 35% reduction is going to bring buyers back into the market. I think market is getting those numbers now but without the sales. I am actually quite surprised how quickly the general market has fallen, and I dont mean just houses. It seems the consumers have drastically curtailed their spending for everything, houses, cars, clothes, retail, restaurant, and etc. And people are not expecting 10% or 15% off but more like 40 50 60% on goods. I think BC is in the cusp of a recession or are already in one now. Like I stated its going to be a very interesting spring.

JAN

There may be 1 in 20 sellers who needs to sell at a deep discount. Same thing like what Onni is doing. The deal for Onni is to bring out buyers in a "Big Blitz". Great marketing ploy to get all the attention to sell off all their remaining new homes. Buyers pay 5% deposit and complete the purchase in 30 to 60 days. GST to be paid by buyers. The deals's condition is "subject to the Buyer and Deveopler agreeing on a reduced price by ___% discount from list price"

Developer already has 15% forfeited deposits from pre-sale buyers who did not want to complete.

As for the general market, home sellers are holding out and can choose not to sell. The bottom is not likely to be this spring. The price decline will likely drag past the winter Olympic in 2010. I rather track the supply/demand ratio and only time will tell how low home prices in Greater Vancouver will go down. I still maintain good market support and buying interest will return nar to 30% to 35% price correction.

MAR

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