| Year | No. Homes Sold |
Price Range | Average Price |
| 2001 | 38 | $199,000 - 300,000 | $249,000 |
| 2002 | 41 | $234,500 - 339,900 | $287,000 |
| 2003 | 41 | $280,000 - 396,000 |
$338,000 |
| 2004 | 31 | $310,000 - 410,000 |
$360,000 |
| 2005 | 43 | $363,000 - 480,000 | $421,000 |
| 2006 | 34 | $458,800 - 570,000 | $514,000 |
| 2007 | 31 | $446,000 - 618.000 | $532,000 |
| 2008 | 28 | $510,000 - 765,000 | $637,000 |
The sales of older homes in Richmond Seafair follow the market trend for Richmond. Home prices in the area reached the peak around the end of 2008. The soft housing market in Richmond in early 2009 had resulted in home prices in the Richmond Seafair area declining significantly.
Click here for the latest Richmond housing market update.
The homes selected for the above study were based on homes that were over 25 years old and with lot sizes between 7,000 to $9,000 sq ft. During the period form 2001 to end Nov/2008, the monthly average sale for old homes in prime locations was around 36 a month.
Home Prices Declining Since May/2008
The drop in demand for these older homes since May, 2008 had resulted in significant price reductions by home sellers. Homes similar to those previously sold at $600,000 to $650,000 are priced much lower now.
There are some homes in the Seafair area being priced at the $500,000 range now. There were 2 recent sales in this area that were done at $450,000 to $488,000. The soft housing market is expected to continue into next year, and home prices are likely to continue the decline.
Rental Income & Cap Rates
Buyers interest is epected to improve when home prices become more attractive. An acceptable price range is when investors are able to buy revenue properties at 4.5% to 5% cp rates. Current gross yearly rental income for these homes is around $21,600.
Based on investors expectation of 4.5% to 5.0% cap rates, buyers will become more active when the selling prices for these homes are in the $432,000 to $480,000 range.
If you like to have more information on homes for sale around Richmond Seafair area, you can contact me at 604-721-4817 or email me.
 |
Comments(2)