q2 2018 vs. q2 2017 detached richmond · • remember that you only need to qualify at the higher...

Q2

RICHMOND

DETACHED

TOWNHOME

CONDO

Apr, May, June & Q2 2018RICHMOND

UNIT SALES

183 79%TOTAL ACTIVE LISTINGS

736 7.2%

HPI (combined total)

$1,648,600 0.09%

AVE. DAYS ON MARKET

49 31%

UNIT SALES

195 44%

UNIT SALES

439 36%

TOTAL ACTIVE LISTINGS

321 4.3%

TOTAL ACTIVE LISTINGS

713 3.7%


$683,800 19.44%


$854,800 11.56%

AVE. DAYS ON MARKET

30 23%

AVE. DAYS ON MARKET

23 26%

Q2 2018 VS. Q2 2017

Faith’s Exclusive Richmond Analysis

Right now, mid-year of the third year of the most dramatic expansion of the Metro Vancouver housing market in history, is a challenging time for both buyers and sellers.

In the past three years the benchmark home price

has increased 63%. If this wasn’t enough of a barrier to buyers, since the first of the year the federal government has introduced stringent mortgage regulations, including the infamous stress test, and mortgage rates have increased. Foreign homebuyers are now subject to a 20% tax on their purchase, the highest rate in the world outside of Asia.

Home sellers, as a result, have seen sales fall nearly 30% below the 10-year average.

The media and most pundits are referring to a “housing crisis” with some calling for even more extreme measures to curb housing demand.

So, let’s inject some reality into the discussion.

In the past six months, approximately 23,300 homes have sold through the Multiple Listing Service in Greater Vancouver and the Fraser Valley at an overall benchmark price approaching $800,000. In June alone, on average, 129 homes sold every day.

Hundreds of people continue to buy homes and will continue to do so. The majority are not speculators or foreign investors: they are local families, first-time buyers and downsizers who simply need a home and recognize the inherent advantages of homeownership.

But there is no arguing that both buyers and sellers need, more than ever, to be working with a real estate agency with long experience, deep market knowledge and a proven record of performance and service.

Faith Wilson Group has been awarded the Real Estate Board of Greater Vancouver

Lifetime Achievement Award, an honour that recognizes outstanding sales performance but also a consistent commitment to fair dealing and client service during more than two decades in the industry. We have always provided our exclusive Peace of Mind Guarantee for both Buyers and Sellers through the many real estate cycles this market has experienced. We stand behind this guarantee because we believe that is the only way to treat each and every client, whether they are buying their first condo or a legacy estate for their family. And despite market conditions.

Challenging times beget opportunity, often life-changing opportunities. Today is no

exception. There is a now a tremendous inventory of homes available in every price range and neighbourhood. There are also a huge number of people aspiring to own a home, including the estimated 40,000 people moving into Metro Vancouver each year.

Stick with your plan, have faith in your dream and work with the people who will help you achieve it.

Warmest Reguards,

Now is when working with a true professional pays off

The information included in this report is based on residential sales data and statistcal information sourced and compiled from the Real Estate Board of Greater Vancouver’s MLXchange database and the REALTOR Link® website. The information is current as of March 1st, 2018 and is subject to change by the REBGV. Faith Wilson Realty Group Inc., makes no guarantees as to the accuracy of the information provided and is not responsible for changes, errors or omissions to this information.

Discover YOUR neighbourhood's real estate market activity,

trends & benchmark pricing.

Finding the right home in the right neighbourhood can be a challenge. That is why we have our exclusive Neighbourhood Profiles available for you on our web site. Each profile features: • Information on the neighbourhood's

schools, housing, recreation, shopping, restaurants, transportation and more.

• A summary of CURRENT active listings, arranged by property type and showing the number of units available and the median asking price.

• Up-to-date MLS® HPI Benchmark prices AND price changes from one month to five years - a rich resource to instantly see the price trend of the type of home you are interested in, within your specific neighbourhood.

To do so, visit FaithWilsonGroup.com and find out about Vancouver Westside, Eastside, Downtown, North Vancouver, South Surrey and Richmond neighbourhoods. With more coming soon.


Resurging confidence in the Canadian economy and employment are boosting home buying intentions to the highest levels since 2010, despite the Federal Government’s new mortgage “stress test.” According to the Annual RBC Home Ownership Poll, 32% of Canadians are very or somewhat likely to buy a home in the next two years, up seven percentage points from last year. In BC, the numbers are higher, with 36% intending to purchase. That’s an 11% increase from 2017. The new guidelines are however impacting purchase decisions, including making higher down payments, delaying home purchases or buying a less expensive, smaller home or moving to a less expensive location. As intentions to buy continues to climb in Canada, just over one one-third of Canadians indicated they had received or would be receiving financial assistance from their family for a down payment, while almost an equal number plan to do it on their own with a dedicated savings account.

Biggest challenge: Finding the right property The top two home buying challenges buyers face are choosing the right property and deciding how much they can afford. For most, this journey begins online, and home owners

revealed they spent an average of five weeks searching online for their current home. In fact, nearly one-in-10 millennials said they would purchase a home without ever physically seeing it. Overall, Canadians value being able to “visit” a home virtually, with almost half saying they looked at photos/videos of prospective homes online. Finally, to help determine costs and affordability, 39% of home owners took valuations of neighboring homes into account, and 36% used affordability calculators.

Millennials are feeling more confident about jobs, economy – and home purchase intentions Millennials (ages 18-34) express the strongest of those with home buying intentions (50%), according to the annual RBC Home Ownership Poll. Compared to 2017, more millennials now believe that a home purchase is a good investment. In fact, 84% responded it’s a “very good or good investment” vs. 79% in 2017. Millennials are also feeling less anxiety about employment (36% vs. 47% in 2017)

Interest rates driving home buying intentions Sixty one percent of Canadians are very or somewhat concerned about interest rate

increases – a jump of almost 10% from last year. Over one-third are thinking about buying a home sooner because of current low interest rates, while another one-third are also thinking of doing so because of a potential increase in interest rates.

Future proof your financial life. Do your own stress test. While optimism about the job market and the economy has increased, it can also lead us to feel overly optimistic about what we can afford. Your home is more than just a place to live. It is a big investment that can impact your plans to retire, your ability to afford an education for your child or it can make things tight on a monthly basis. Whether you’re buying your first home or helping your children buy their first home, it’s important to meet with an expert to get a better idea of what impact that will have on your long term savings plan.

Canadians Reveal Highest Home Purchase Intent in Eight Years

Kathy Wu Nikki Voutsilakos

Mortgage SpecialistRBC Royal Bank

[email protected]

Mortgage SpecialistRBC Royal [email protected]

Stress Test Need Not Stall Move-Up PlansBob and Jean have owned their Burnaby bungalow for seven years and planned to move up to a larger house as the children became older. With a good credit rating, a stable household income and 40% worth of equity in a house assessed at $1.5 million, the couple were surprised when they went to their bank for a pre-approved mortgage for their move-up purchase.

Since the new mortgage stress test was introduced on January 1, the couple found that they could not qualify for the quality of home they really wanted.

The Office of the Superintendent of Financial Institutions mortgage stress test requires that buyers with more than a 20 per cent down payment must qualify at Bank of Canada’s 5 year benchmark rate, which is currently set at 5.34%, or at the current contracted rate plus 2% whichever is higher.

For Bob and Jean this meant that, despite never being late with a mortgage payment and willing to put down a substantial down payment, their purchasing power was

reduced by about 20%. Planning to move up to a larger house worth $1.8 million to $1.9 million, they were told they could qualify at $1.5 million or less. In other words, the same house they already own.

The stress test is meant to ensure buyers can afford a mortgage if lending rates should increase. However, a mere 0.16% of B.C. mortgage holders are currently in arrears, meaning they have missed three or more mortgage payments. This means just 1,008 out of 644,984 mortgage holders in B.C. are behind in mortgage payments. This is the second-lowest mortgage arrears rate in Canada and the lowest default rate among all other forms of consumer debt.

Over the past 15 years, through fluctuating mortgage rates, Canada’s overall mortgage arrears rate has never risen above 0.35%.

So, logic aside, what can a move-up buyer do to achieve the home they want?

Here is some advice from the Faith Wilson Group mortgage specialist:

• Remember that you only need to qualify at the higher rate, not actually pay it. The best five-year rate today is 3.59%, so even if the new stress test requires you to qualify at 5.34%, you would be paying the contracted rate of 3.59% on your mortgage once you qualify for the loan.

• Use the existing equity in the home to eliminate smaller debts, such as credit cards and car loans, to make your mortgage application more acceptable. (Note, however, that refinancing a home is also subject to the stress test at federally regulated lenders.)

• Consider taking the maximum-allowed 30-year amortization on a non-insured mortgage, which will reduce your monthly payments compared to the convention 25-year amortization.

The bottom line advice: talk to mortgage professional and you may find that, despite the stress-test, you can buy the move-up home you want and can afford nearly stress free.

Welcome our newMortgage Specialists

- Kevin Lutz, Regional Manager, Residential Mortgages Follow Kevin on Twitter @RBCKevinLutz


APRIL - SINGLE FAMILY DETACHED HOMES

SALES AND BENCHMARK PRICES BY NEIGHBOURHOOD

BENCHMARK PRICE CHANGE (%)

MLS® Neighbourhood Unit Sales HPI Benchmark Price 1 Month 3 Months

Boyd Park 1 $1,620,100 0.2 3.75

Bridgeport RI 0 $1,366,900 -3.63 -2.67

Broadmoor 9 $2,170,700 -2.51 -3.51

East Cambie 2 $1,436,800 -2.81 -1.68

East Richmond 0 $2,105,900 -0.34 0.98

Garden City 2 $1,454,200 -4.33 -5.66

Gilmore 0 $1,896,000 -0.94 2.11

Granville 2 $1,893,300 -0.87 -0.45

Hamilton RD 3 $1,220,600 -0.75 0.5

Ironwood 1 $1,502,800 -1.14 -0.45

Lackner 1 $1,760,400 -1.84 1.48

McLennan 0 $1,945,800 -0.26 1.22

McLennan North 0 $1,788,800 -4.72 -1.33

McNair 2 $1,636,700 -0.76 -0.53

Quilchena RI 0 $1,750,500 -0.8 1

Riverdale RI 2 $1,755,500 -0.65 -0.12

Saunders 0 $1,606,200 -2.47 -4.37

Sea Island 0 $924,000 3.93 5.75

Seafair 4 $1,670,700 -0.43 3

South Arm 2 $1,379,000 -2.61 -4.88

Steveston North 5 $1,494,400 0.53 3.95

Steveston South 1 $1,770,400 0.93 3.87

Steveston Village 3 $1,634,600 2.01 5.02

Terra Nova 1 $2,008,000 -1.7 0.27

West Cambie 3 $1,411,400 -3.72 -2.78

Westwind 0 $1,823,000 0.09 3.75

Woodwards 3 $1,587,800 -4.27 -5.14

Combined Total 48 $1,684,500 -1.4 -0.35

Price Segment ($) New Listings Added Unit Sales

0 – 800,000 1 0 0%

800,001 - 900,000 0 0 0

900,001 - 1,000,000 0 1 0

1,000,001 - 1,100,000 4 2 50%

1,100,001 - 1,200,000 4 3 75%

1,200,001 - 1,300,000 7 2 29%

1,300,001 - 1,400,000 8 4 50%

1,400,001 - 1,600,000 37 6 16%

1,600,001 - 1,800,000 38 8 21%

1,800,001 - 2,000,000 33 5 15%

2,000,001 - 2,250,000 17 1 6%

2,250,001 - 2,500,000 29 7 24%

2,500,001 - 2,750,000 14 4 29%

2,750,001 - 3,000,000 33 1 3%

3,000,001 - 5,000,000 36 4 11%

5,000,001 + 4 0 0%

Totals 265 48 18%

LISTING AND SALES ACTIVITY BY PRICE SEGMENT

SALES PRICE MONTHLY TREND

FAITH’S KEY INSIGHTS:n Richmond detached house sales fell 71.9% in April, compared to April

2017. This year’s 48 sales were the lowest April level in years. That resulted in a sales ratio of 18%, compared to 51% in April of last year. Recent buyers, however, experienced what potential house buyers have dreamed of for three years: stable prices, a huge selection – 265 new listings were added in the month – and plenty of time to look closely at property and neighbourhoods and negotiate both subjects and prices. Richmond’s detached house benchmark price is now $1.6 million, down 0.3% from six months ago.

n Richmond’s housing starts are up 50% so far this year compared to 2017 and dozens of new commercial buildings are ascending. That speaks to the city’s long-term confidence and potential. Some of April’s buyers likely recall the last time Richmond experienced a big slowdown in sales: that was in 2008 when the benchmark detached house price was $423,000. A decade from now I suspect many will also recall the spring of 2018, saying, “I wish I had bought a house back then.”

– Me

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– Av

erage

Sales

Price

$2,000,000 $1,900,000 $1,800,000 $1,700,000 $1,600,000 $1,500,000 $1,400,000

NOV. 17 DEC. 17 JAN. 18 FEB. 18 MAR. 18 APR. 18

70

60

50

40

30

20

10

DAYS ON MARKET MONTHLY TREND

Days

– Me

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Avera

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Mark

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Sales-to-New-Listings Ratio


$1,764,122

$1,590,000

1,819,347

$1,680,000

$1,888,156

$1,755,000

$1,800,958

$1,728,000

$1,802,752

$1,675,000

$1,898,376

$1,726,500

40

37

54

43

66

54 39

22

46

35

50

24

January 65 64 -1.5%February 124 57 -54.0%March 143 80 -44.1%April 171 48 -71.9%May June Total 503 249 -50.5%

2017 2018 CHANGEUNIT SALES (BY MONTH)

THE REAL NEIGHBOURHOOD RESULTS: APR 2018THE REAL RICHMONDE RESULTS:APR 2018


MAY - SINGLE FAMILY DETACHED HOMES

January 65 64 -1.5%February 124 57 -54.0%March 143 81 -43.4%April 171 68 -60.2%May 154 58 -62.3%June Total 657 328 -50.1%





Boyd Park 0 $1,530,000 -5.56 -3.17

Bridgeport RI 0 $1,361,800 -0.37 -2.84

Broadmoor 4 $2,198,000 1.26 -4.16

East Cambie 1 $1,444,300 0.53 -1.64

East Richmond 1 $2,107,500 0.08 0.68

Garden City 0 $1,502,300 3.31 -3.33

Gilmore 1 $1,798,100 -5.16 -2.7

Granville 8 $1,881,800 -0.61 0.09

Hamilton RI 0 $1,196,500 -1.97 -1.63

Ironwood 2 $1,473,000 -1.99 -2.25

Lackner 2 $1,693,500 -3.8 -3.69

McLennan 1 $1,924,900 -1.07 -0.74

McLennan North 1 $1,755,800 -1.85 -3.21

McNair 4 $1,603,600 -2.02 -2.3

Quilchena RI 4 $1,717,900 -1.86 0.25

Riverdale RI 2 $1,756,500 0.06 1.68

Saunders 2 $1,653,400 2.94 -1.72

Sea Island 1 $906,700 -1.87 1.68

Seafair 7 $1,586,100 -5.06 -3.52

South Arm 0 $1,420,100 2.99 -2.51

Steveston North 4 $1,432,800 -4.12 -1.96

Steveston South 2 $1,708,600 -3.49 -1.81

Steveston Village 1 $1,542,400 -5.64 -3.36

Terra Nova 2 $1,991,300 -0.83 0.03

West Cambie 3 $1,412,900 0.1 -2.84

Westwind 3 $1,759,700 -3.47 -1.2

Woodwards 2 $1,644,700 3.58 -1.91

Combined Total 58 $1,665,100 -1.15 -1.94


0 – 800,000 3 0 0%

800,001 - 900,000 0 0 0

900,001 - 1,000,000 4 0 0%

1,000,001 - 1,100,000 4 1 25%

1,100,001 - 1,200,000 5 2 40%

1,200,001 - 1,300,000 9 1 11%

1,300,001 - 1,400,000 14 4 29%

1,400,001 - 1,600,000 59 13 22%

1,600,001 - 1,800,000 40 10 25%

1,800,001 - 2,000,000 38 6 16%

2,000,001 - 2,250,000 17 5 29%

2,250,001 - 2,500,000 22 5 23%

2,500,001 - 2,750,000 21 4 19%

2,750,001 - 3,000,000 21 2 10%

3,000,001 - 5,000,000 41 5 12%

5,000,001 + 7 0 0%

Totals 305 58 19%



FAITH’S KEY INSIGHTS:n Buyers, start your engines. You are finally and firmly in the driver’s seat.

In May Richmond had the highest number of new listings for detached houses (305) in more than a year, but the lowest sales (58) since December 2017, down a stunning 62.3% from May 2017. The May benchmark price of a Richmond detached house was $1.66 million, nearly unchanged (up 0.9%) from May of last year. It now takes a median of 23 days for a new listing to sell. This is a true buyer’s market with a sales-to-new-listing ratio at a low of 19%, and stable prices.

n Clearly, the myriad of tax and regulatory changes that started with the mortgage stress test in January and continued through the February provincial budget have affected the perception of detached house buyers. But perception is different than fundamentals and Richmond’s long-term fundamentals of jobs, economy, in-migration and transit remain very strong. Faith Wilson Group provides the Peace of Mind Guarantee for Buyers so buyers can make the smart decision in what could be a brief window of opportunity.

– Me

dian S

ales P

rice

– Av

erage

Sales

Price

$2,100,000$2,000,000 $1,900,000 $1,800,000 $1,700,000 $1,600,000 $1,500,000

DEC. 17 JAN. 18 FEB. 18 MAR. 18 APR. 18 MAY 18

70

60

50

40

30

20

10


Days

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$1,819,347

$1,680,000

$1,888,156

$1,755,000

$1,800,958

$1,728,000

$1,802,752

$1,675,000

$1,898,376

$1,726,500

$2,024,696

$1,895,238

54

43

66

54 39

22

46

35

50

24

41

28

THE REAL NEIGHBOURHOOD RESULTS: MAY 2018THE REAL RICHMOND RESULTS: MAY 2018


JUNE - SINGLE FAMILY DETACHED HOMES

Janaury 65 64 -1.5%February 124 57 -54.0%March 143 80 -44.1%April 171 68 -60.2%May 154 79 -48.7%June 138 66 -52.2%Total 795 414 -47.9%





Boyd Park 1 $1,572,800 2.79 -2.73

Bridgeport RI 0 $1,339,100 -1.67 -5.59

Broadmoor 4 $2,102,100 -4.36 -5.59

East Cambie 3 $1,404,200 -2.78 -5.01

East Richmond 1 $2,080,500 -1.28 -1.54

Garden City 3 $1,436,400 -4.38 -5.5

Gilmore 0 $1,799,000 0.05 -6.01

Granville 3 $1,882,400 0.03 -1.44

Hamilton RI 0 $1,166,700 -2.49 -5.13

Ironwood 2 $1,432,300 -2.76 -5.78

Lackner 3 $1,724,900 1.85 -3.82

McLennan 0 $1,897,400 -1.43 -2.74

McLennan North 1 $1,773,100 0.99 -5.56

McNair 3 $1,560,600 -2.68 -5.37

Quilchena RI 1 $1,726,300 0.49 -2.18

Riverdale RI 6 $1,754,400 -0.12 -0.7

Saunders 9 $1,569,600 -5.07 -4.69

Sea Island 1 $935,300 3.15 5.2

Seafair 2 $1,624,500 2.42 -3.19

South Arm 2 $1,341,500 -5.54 -5.26

Steveston North 3 $1,472,400 2.77 -0.95

Steveston South 4 $1,727,400 1.1 -1.52

Steveston Village 2 $1,587,800 2.94 -0.91

Terra Nova 2 $1,978,600 -0.64 -3.14

West Cambie 9 $1,386,800 -1.85 -5.41

Westwind 0 $1,768,300 0.49 -2.92

Woodwards 1 $1,586,300 -3.55 -4.35

Combined Total 66 $1,648,600 -0.99 -3.5


0 – 800,000 1 0 0%

800,001 - 900,000 2 0 0%

900,001 - 1,000,000 1 1 100%

1,000,001 - 1,100,000 5 3 60%

1,100,001 - 1,200,000 2 2 100%

1,200,001 - 1,300,000 11 4 36%

1,300,001 - 1,400,000 8 5 63%

1,400,001 - 1,600,000 47 14 30%

1,600,001 - 1,800,000 35 9 26%

1,800,001 - 2,000,000 30 10 33%

2,000,001 - 2,250,000 16 4 25%

2,250,001 - 2,500,000 25 6 24%

2,500,001 - 2,750,000 15 2 13%

2,750,001 - 3,000,000 22 1 5%

3,000,001 - 5,000,000 34 5 15%

5,000,001 + 11 0 0%

Totals 265 66 25%



FAITH’S KEY INSIGHTS:n In June of 2016, a month before the original B.C. foreign-homebuyer tax

came in, 127 detached houses sold in Richmond at a benchmark price of $1.7 million. This June, following the increase in the foreign-buyer tax to 20% of a home’s value, just 66 detached houses sold in Richmond at a benchmark price of $1.64 million. Prices continue to track downward. In June the benchmark detached house price was 0.99% lower than in May and 3.5% lower than three months earlier. Richmond has the highest proportion of foreign buyers in Metro Vancouver and these buyers are now facing the second-highest foreign-homebuyer tax in the world, second only to Singapore.

n Richmond detached house sellers, however, are mostly sticking with their listing price, despite a sales-to-new-listing ratio at 25%. In the hot market of June 2016, for example, there were 120 detached listings for $1.6 million or less. This June, with sales 50% lower, there were just 66 listed at that level. There is a message here for Richmond sellers and it involves taking a hard look at the current market value.

– Me

dian S

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– Av

erage

Sales

Price

$2,100,000$2,000,000 $1,900,000 $1,800,000 $1,700,000 $1,600,000 $1,500,000

JAN. 18 FEB. 18 MAR. 18 APR. 18 MAY 18 JUN. 18

70

60

50

40

30

20

10


Days

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$1,888,156

$1,755,000

$1,800,958

$1,728,000

$1,802,752

$1,675,000

$1,898,376

$1,726,500

$2,024,696

$1,895,238

$1,885,362

$1,700,000

66

54 39

22

46

35

50

24

41

28

59

33

THE REAL NEIGHBOURHOOD RESULTS: JUN 2018THE REAL RICHMOND RESULTS: JUN 2018


THE REAL NEIGHBOURHOOD RESULTS: Q2 2018

Q2 - SINGLE FAMILY DETACHED HOMES



THE REAL RICHMOND RESULTS: Q2 2018

SALES PRICE QUARTERLY TREND

FAITH’S KEY INSIGHTS:n Richmond detached house sales were just 213 in Q2, down a stunning

54% from the second quarter of last year. At the same time, the number of new listings shot up 21% from Q2 2017 to 832 houses. With the sales-to-new-listing ratio at a skinny 26% and prices falling 3.5% from Q1, this is now clearly a buyer’s market. This is also no surprise. Richmond detached sales have been trending down since Q1 2016 and benchmark house prices have not budged in a year. At $1.64 million, prices are virtually unchanged (down 0.09%) from Q2 of 2017.

n Unlike some, I believe we are nearing the bottom of Richmond’s detached house downturn. There is simply too much pent-up demand as immigration continues to increase and many local families are seeking a Richmond house. One sign is that Q2 detached sales were higher than in Q1, an indication that the affect of a slew of government measures earlier this year are being processed by buyers. Stable prices and a high inventory only bodes well for Richmond detached house sales.

Unit Sales (by Quarter)

Q1

Q2

Q3

Q4Year-to-Date Totals

2017328

463

791

2018199

213

412

Change (%)

-39.3%

-54.0%

-47.9%

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Sales

Price

$2,400,000 $2,200,000$2,000,000$1,800,000$1,600,000$1,400,000$1,200,000

$1,878,732

$1,675,000

$1,868,616

$1,680,000

$1,898,829

$1,678,095

$1,825,713

$1,683,000

$1,914,195

$1,750,000

Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018

70

60

50

40

30

20

10

34

17

39

27

48

36

49

32

49

29

DAYS ON MARKET QUARTERLY TREND

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Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018

MLS® Neighbourhood Unit Sales HPI Benchmark Price 3 Months 1 Year

Boyd Park 4 $1,572,800 -2.73 3.58

Bridgeport RI 2 $1,339,100 -5.59 1.62

Broadmoor 20 $2,102,100 -5.59 -2.83

East Cambie 6 $1,404,200 -5.01 1.54

East Richmond 2 $2,080,500 -1.54 4.92

Garden City 8 $1,436,400 -5.5 -3.24

Gilmore 1 $1,799,000 -6.01 6.68

Granville 15 $1,882,400 -1.44 -4.79

Hamilton RI 4 $1,166,700 -5.13 3.6

Ironwood 5 $1,432,300 -5.78 0.97

Lackner 8 $1,724,900 -3.82 1.36

McLennan 1 $1,897,400 -2.74 4.25

McLennan North 2 $1,773,100 -5.56 2.55

McNair 12 $1,560,600 -5.37 1.61

Quilchena RI 7 $1,726,300 -2.18 -4.03

Riverdale RI 16 $1,754,400 -0.7 -3.4

Saunders 14 $1,569,600 -4.69 -1.44

Sea Island 2 $935,300 5.2 2.74

Seafair 15 $1,624,500 -3.19 2.45

South Arm 4 $1,341,500 -5.26 -1.26

Steveston North 14 $1,472,400 -0.95 4.08

Steveston South 7 $1,727,400 -1.52 3.94

Steveston Village 6 $1,587,800 -0.91 4.94

Terra Nova 8 $1,978,600 -3.14 -8.54

West Cambie 16 $1,386,800 -5.41 0.72

Westwind 5 $1,768,300 -2.92 4.24

Woodwards 8 $1,586,300 -4.35 -2.01

Combined Total 213 $1,648,600 -3.5 -0.09


0 – 800,000 4 0 0%

800,001 - 900,000 3 0 0%

900,001 - 1,000,000 4 2 50%

1,000,001 - 1,100,000 14 7 50%

1,100,001 - 1,200,000 12 8 67%

1,200,001 - 1,300,000 29 10 34%

1,300,001 - 1,400,000 27 16 59%

1,400,001 - 1,600,000 145 42 29%

1,600,001 - 1,800,000 113 28 25%

1,800,001 - 2,000,000 99 28 28%

2,000,001 - 2,250,000 49 14 29%

2,250,001 - 2,500,000 79 23 29%

2,500,001 - 2,750,000 50 14 28%

2,750,001 - 3,000,000 71 4 6%

3,000,001 - 5,000,000 112 17 15%

5,000,001 + 21 0 0%

Totals 832 213 26%

LISTING AND SALES ACTIVITY BY PRICE SEGMENTSales-to-New-Listings Ratio


APRIL - TOWNHOUSES




Boyd Park 2 $467,600 1.73 4.07

Bridgeport RI 0 $671,300 -0.16 3.02

Brighouse 2 $786,800 0.93 2.59

Brighouse South 2 $785,500 -1.51 -1.72

Broadmoor 1 $977,400 0.99 0.73

East Cambie 5 $851,700 0.77 1.48

Garden City 1 $925,100 0.74 0.89

Granville 4 $759,600 1.14 3.42

Hamilton RI 4 $716,200 1.33 2.03

Ironwood 0 $690,900 1.27 1.23

Lackner 1 $924,100 0.38 1.06

McLennan North 9 $961,200 1.91 3.83

McNair 2 $589,500 0.29 1.63

Quilchena RI 0 $652,800 0.19 1.77

Riverdale RI 0 $833,300 0.81 0.85

Saunders 5 $662,200 1.46 1.71

Seafair 0 $970,200 0.61 -0.68

South Arm 0 $678,500 1.03 1.94

Steveston North 3 $661,100 1.03 0.95

Steveston South 7 $918,400 0.19 0.42

Steveston Village 0 $844,400 1.02 0.6

Terra Nova 3 $952,200 1.27 1.12

West Cambie 3 $861,400 1.52 3.97

Westwind 0 $807,400 0.89 1.5

Woodwards 1 $818,100 2.55 1.93

Combined Total 55 $839,000 0.99 2


0 – 500,000 2 2 100%

500,001 – 550,000 1 1 100%

550,001– 600,000 6 2 33%

600,001 – 650,000 4 3 75%

650,001 – 700,000 10 6 60%

700,001 – 750,000 10 2 20%

750,001 – 800,000 14 4 29%

800,001 – 850,000 5 11 220%

850,001 – 900,000 19 5 26%

900,001 – 950,000 12 5 42%

950,001 – 1,000,000 11 2 18%

1,000,001 – 1,050,000 4 3 75%

1,050,001 – 1,100,000 11 4 36%

1,100,001 – 1,200,000 16 2 13%

1,200,001 – 1,500,000 8 3 38%

1,500,001+ 4 0 0%

Totals 137 55 40%


FAITH’S KEY INSIGHTS:n Richmond has B.C.’s highest proportion of foreign buyers so the

increase in the foreign-home buyer tax to 20% was likely among the reasons for a 55.3% drop in townhouse sales in April compared to a year earlier. The 55 sales were the lowest since last December. Still, with 137 new listings, the sales-to-new-listing ratio was 40% and spiked to 70% for townhouses listed at $700,000 or less. In all, a remarkably balanced market considering the headwinds some buyers are facing.

n Late last year many buyers arranged pre-approved mortgages to escape the federal mortgage stress test that came in on January 1. Those pre-approvals expired March 31, meaning all buyers are now subject to qualifying at higher mortgage rates than what is readily available. Buyers need only qualify for the higher rates, not actually pay them, and major lenders are suddenly competing hard on mortgage rates. This week one of the Big 6 banks was offering five-year, fixed-rate mortgages at 3.34%. Faith Wilson Group’s team includes a mortgage specialist who can provide the latest information.

$950,000

$900,000

$850,000

$800,000

$750,000$700,000$650,000

Days

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$868,124

$846,000

$873,219

$890,000

$896,808

$875,000

$888,817

$867,450

$856,358

$850,000

27

12

31

23

38

24

28

16

26

13

36

14

January 54 57 5.6%February 87 71 -18.4%March 104 62 -40.4%April 123 55 -55.3%May June Total 368 245 -33.4%


$855,680

$807,500

THE REAL RICHMOND RESULTS: APR 2018 THE REAL NEIGHBOURHOOD RESULTS: APR 2018


MAY - TOWNHOUSES

January 54 57 5.6%February 87 71 -18.4%March 104 62 -40.4%April 123 76 -38.2%May 118 56 -52.5%June Total 486 322 -33.7%





Boyd Park 1 $470,200 0.55 8

Bridgeport RI 0 $675,500 0.64 1.64

Brighouse 5 $794,300 0.96 3.75

Brighouse South 7 $786,100 0.07 -0.22

Broadmoor 1 $1,000,500 2.37 2.89

East Cambie 4 $855,100 0.4 0.56

Garden City 5 $937,200 1.31 2.65

Granville 2 $764,200 0.6 4.21

Hamilton RI 2 $720,800 0.64 2.21

Ironwood 1 $696,300 0.79 3.17

Lackner 1 $927,200 0.34 3.61

McLennan North 10 $975,600 1.49 4.92

McNair 0 $595,300 0.98 2.47

Quilchena RI 0 $656,000 0.49 3.63

Riverdale RI 0 $834,500 0.15 2.9

Saunders 2 $673,600 1.73 3.51

Seafair 1 $978,200 0.82 3.31

South Arm 0 $687,100 1.27 2.09

Steveston North 0 $656,200 -0.74 2.29

Steveston South 2 $917,000 -0.15 2.53


Terra Nova 3 $954,900 0.29 2.86

West Cambie 5 $865,400 0.46 4.6

Westwind 0 $819,000 1.44 4.05

Woodwards 4 $823,300 0.63 2.33

Combined Total 56 $846,300 0.87 3.27


0 – 500,000 0 1 0

500,001 – 550,000 3 0 0%

550,001– 600,000 4 0 0%

600,001 – 650,000 3 2 67%

650,001 – 700,000 13 2 15%

700,001 – 750,000 7 2 29%

750,001 – 800,000 14 6 43%

800,001 – 850,000 11 8 73%

850,001 – 900,000 26 15 58%

900,001 – 950,000 8 3 38%

950,001 – 1,000,000 23 2 9%

1,000,001 – 1,050,000 7 3 43%

1,050,001 – 1,100,000 14 3 21%

1,100,001 – 1,200,000 20 5 25%

1,200,001 – 1,500,000 15 2 13%

1,500,001+ 6 2 33%

Totals 174 56 32%


FAITH’S KEY INSIGHTS:n A total of 174 new listings for townhouses were added to Richmond in

May, the highest level in more than year. This is welcomed, because only 30 new townhouses have completed this year in Richmond, down from 97 at the same time in 2017. Another 114 townhouses are under construction but most won’t complete until 2019. Meanwhile, sales of Richmond townhouses dropped 52.5% in May compared to May 2017. May’s 56 sales were the lowest for any month this year.

n The benchmark price of a Richmond townhouse in May was $846,300, up 0.87% from a month earlier and 3.2% higher than in March. We expect Richmond townhouse prices to remain stable, despite the slower sales. The current angst over new government regulations will ease, buyer confidence will return and the townhouse inventory will remain low. Still, buyers can find relative bargains: in May 23 Richmond townhouses were listed for sale for $700,000 or less. I would advise buyers that the best negotiation opportunity is townhouses priced above $1 million: there were 62 new listings at this level in May and only 14 of them sold.

$925,000

$900,000

$875,000$850,000

$825,000

$800,000$775,000

Days

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Price

DEC. 17 JAN. 18 FEB. 18 MAR. 18 APR. 18 May 18


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DEC. 17 JAN. 18 FEB. 18 MAR. 18 APR. 18 May 18

$873,219

$890,000

$896,808

$875,000

$888,817

$867,450

$856,358

$850,000

$909,920

$880,000

31

23

38

24

28

16

26

13

36

14

25

12

$868,124

$846,000

THE REAL RICHMOND RESULTS: MAY 2018 THE REAL NEIGHBOURHOOD RESULTS: MAY 2018


JUNE - TOWNHOUSES

Janaury 54 57 5.6%February 87 71 -18.4%March 104 62 -40.4%April 123 77 -37.4%May 118 73 -38.1%June 105 45 -57.1%Total 591 385 -34.9%





Boyd Park 0 $506,100 7.64 10.1

Bridgeport RI 1 $661,600 -2.06 -1.59

Brighouse 0 $794,500 0.03 1.93

Brighouse South 6 $792,000 0.75 -0.7

Broadmoor 2 $978,800 -2.17 1.14

East Cambie 4 $837,600 -2.04 -0.9

Garden City 1 $931,900 -0.57 1.47

Granville 0 $763,400 -0.11 1.64

Hamilton RI 3 $708,800 -1.66 0.29

Ironwood 2 $684,500 -1.7 0.33

Lackner 0 $990,100 6.78 7.54

McLennan North 8 $977,600 0.21 3.65

McNair 0 $589,700 -0.94 0.33

Quilchena RI 0 $697,300 6.3 7.02

Riverdale RI 1 $890,700 6.73 7.76

Saunders 2 $665,200 -1.25 1.92

Seafair 1 $1,033,900 5.69 7.22

South Arm 0 $682,800 -0.63 1.67

Steveston North 4 $702,100 7 7.29

Steveston South 2 $982,200 7.1 7.14


Terra Nova 4 $1,013,800 6.17 7.82

West Cambie 1 $862,700 -0.32 1.66

Westwind 0 $868,200 6 8.49

Woodwards 3 $817,800 -0.67 2.51

Combined Total 45 $854,800 1.01 2.89


0 – 500,000 2 0 0%

500,001 – 550,000 0 1 0%

550,001– 600,000 3 2 67%

600,001 – 650,000 1 2 200%

650,001 – 700,000 5 4 80%

700,001 – 750,000 6 1 17%

750,001 – 800,000 10 4 40%

800,001 – 850,000 7 4 57%

850,001 – 900,000 13 4 31%

900,001 – 950,000 16 1 6%

950,001 – 1,000,000 11 6 55%

1,000,001 – 1,050,000 4 5 125%

1,050,001 – 1,100,000 11 6 55%

1,100,001 – 1,200,000 14 2 14%

1,200,001 – 1,500,000 14 3 21%

1,500,001+ 1 0 0%

Totals 118 45 38%


FAITH’S KEY INSIGHTS:n There is a lot of confidence in Richmond’s townhouse sector from

sellers. So far this year, sellers have listed 782 townhouses for sale, including 118 new listings in June. Buyers have not been so confident, however, with total townhouse sales down 57.1% in June from the same month a year earlier to 45 transactions, the lowest level this year. June is normally a very active time for buyers, but the sales-to-new-listing ratio fell to 38% and was even lower once list prices rose above $1.1 million. This is such a strange anomaly that I suspect it will not last. Once buyers get over the shock of the unprecedented new taxes and regulations imposed since February, and discover the super selection of townhouses available, I believe sales will recover.

n The Richmond benchmark townhouse price in June was $854,800, up 1% from May and 2.8% higher than three months earlier. The most popular price point, though, was from $950,000 to $1.05 million: there were 27 listings in this range and 90% of them sold. This could be a harbinger of a stronger market into the summer season.

$975,000

$950,000

$925,000

$900,000

$875,000$850,000

$825,000

Days

60

50

40

30

20

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$873,219

$890,000

$896,808

$875,000

$888,817

$867,450

$856,358

$850,000

$910,722

$880,000

$948,000

$909,920

38

24

28

16

26

13

36

14

25

12

27

20

THE REAL RICHMOND RESULTS: JUNE 2018 THE REAL NEIGHBOURHOOD RESULTS: JUNE 2018





Q1

Q2

Q3


2017243

346

589

2018190

195

385

Change (%)

-21.8%

-43.6%

-34.6%

THE REAL RICHMOND RESULTS: Q2 2018 THE REAL NEIGHBOURHOOD RESULTS: Q2 2018

Q2 - TOWNHOUSES

Sales-To-New



0 – 500,000 6 4 67%

500,001 – 550,000 3 3 100%

550,001– 600,000 11 4 36%

600,001 – 650,000 8 8 100%

650,001 – 700,000 27 14 52%

700,001 – 750,000 23 11 48%

750,001 – 800,000 40 18 45%

800,001 – 850,000 22 24 109%

850,001 – 900,000 62 30 48%

900,001 – 950,000 35 15 43%

950,001 – 1,000,000 43 13 30%

1,000,001 – 1,050,000 16 12 75%

1,050,001 – 1,100,000 42 16 38%

1,100,001 – 1,200,000 48 13 27%

1,200,001 – 1,500,000 35 8 23%

1,500,001+ 11 2 18%

Totals 321 175 55%

FAITH’S KEY INSIGHTS:n If you own a townhouse in an older Richmond strata project,

particularly if it is near transit or an arterial road, expect to be hearing a buzz about a “windup” trend that is already pronounced in Vancouver, Coquitlam and North Vancouver. Developers are eager to acquire residential land for development and some older strata projects in Richmond appear prime for offers. The first large windup in Richmond netted owners a 60% lift in the assessed value of their townhouse, an indication of what can happen. Faith Wilson Group is experienced in strata windups and can provide guidance to a fairly complicated process for both sellers and investors.

n Richmond Q2 townhouse sales were down 43.6% in Q2 from Q2 last year, but this remains an active townhouse market. The typical new listing sold within a median of 14 days, and the benchmark townhouse price increased nearly 3% from Q1. Also, sales were reported in all but 2 of Richmond’s 25 neighbourhoods, and through a price range of from less than $500,000 to more than $1.5 million. Townhouse sales are gaining traction.

SALES PRICE QUARTERLY TREND

Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018

$950,000$900,000$850,000$800,000$750,000$700,000$650,000

$833,531

$828,000

$874,213

$863,000

$853,818

$828,000

$887,124

$874,500

$889,070

$875,000

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DAYS ON MARKET QUARTERLY TREND

Days

60

50

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20

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MLS® Neighbourhood Unit Sales HPI Benchmark Price 3 Months 1 Year

Boyd Park 5 $506,100 10.1 18.83

Bridgeport RI 2 $661,600 -1.59 11.83

Brighouse 8 $794,500 1.93 10.82

Brighouse South 18 $792,000 -0.7 7.96

Broadmoor 5 $978,800 1.14 10.35

East Cambie 16 $837,600 -0.9 6.41

Garden City 7 $931,900 1.47 11.45

Granville 8 $763,400 1.64 10.83

Hamilton RI 10 $708,800 0.29 7.84

Ironwood 4 $684,500 0.33 9.46

Lackner 4 $990,100 7.54 14.64

McLennan North 37 $977,600 3.65 12.84

McNair 2 $589,700 0.33 9.61

Quilchena RI 0 $697,300 7.02 14.04

Riverdale RI 1 $890,700 7.76 13.37

Saunders 11 $665,200 1.92 12.94

Seafair 5 $1,033,900 7.22 13.74

South Arm 0 $682,800 1.67 10.66

Steveston North 7 $702,100 7.29 13.61

Steveston South 12 $982,200 7.14 13.34


Terra Nova 11 $1,013,800 7.82 13.36

West Cambie 11 $862,700 1.66 10.55

Westwind 1 $868,200 8.49 14.91

Woodwards 9 $817,800 2.51 11.54

Combined Total 195 $854,800 2.89 11.56

23

11

24

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28

13

30

18

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Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018



APRIL - APARTMENTS /CONDOS




Boyd Park 4 $463,200 6.48 10.89

Bridgeport RI 0 $786,600 2.53 8.89

Brighouse 71 $702,900 7.97 3.54

Brighouse South 20 $600,600 -2.14 5.06

Broadmoor 2 $507,900 2.36 8.5

East Cambie 0 $494,300 -0.03 10.56

East Richmond 0 $827,300 2.2 6.91

Garden City 0 $454,600 4.37 5.68

Granville 0 $263,500 2.71 8.97

Ironwood 1 $668,900 0.47 9.64

McLennan North 5 $761,100 2.43 5.89

Riverdale RI 4 $590,800 4.67 7.8

Seafair 0 $457,900 6.43 10.82

South Arm 1 $324,000 3.31 8.13

Steveston North 0 $456,100 5.88 9.53

Steveston South 6 $557,700 -0.37 1.52

West Cambie 25 $724,000 2.4 7.96

Combined Total 141 $684,100 3.69 5.26

FAITH’S KEY INSIGHTS:n It is easy to understand the confidence in Richmond’s condominium

apartment market, and the current balanced conditions should further encourage buyers and sellers. In April 289 new listings for condos came to the market and 141 sold, for a sales-to-new-listing ratio of 49%. This is about as balanced as a market can get. The typical new listing sold within a median of 15 days and the benchmark price increased 3.6% from March, both positive signs for sellers. Price-conscious buyers were welcomed with 83 condos listed at $500,000 or less and 17 Richmond condo buyers in April paid less than $400,000.

n Richmond’s benchmark condo price is now $684,100, up 28% – or about $190,000 – from a year ago. Such a remarkable performance is encouraging condo investors and has helped lead to a confident increase in new condominium construction. So far this year 1,013 multi-family units (about 80% of them condo apartments) have started in Richmond, up from 449 in the same period last year, and that does not count the 1,100 units planned for a single new development of 12 towers near Minoru Park that could break ground this fall. New condos, especially in Richmond, often come with fantastic contemporary amenities and finishes, and new-home warranty coverage. But buyers must also consider that new condo prices can be significantly higher than resale condos because of the rise in land, financing and construction costs since 2016. If you are looking at new pre-sale condos, bring a trusted realtor with you and then compare what is available nearby in the resale market before you make a final decision.

$750,000 $700,000$650,000 $600,000 $550,000 $500,000$450,000


0 – 200,000 0 0 0

200,001 – 250,000 4 0 0%

250,001 – 300,000 3 1 33%

300,001 – 350,000 9 2 22%

350,001 – 400,000 15 14 93%

400,001 – 450,000 18 8 44%

450,001 – 500,000 34 9 26%

500,001 – 550,000 31 24 77%

550,001 – 600,000 22 13 59%

601,000 – 700,000 56 27 48%

700,001 – 800,000 32 14 44%

800,001 – 900,000 27 18 67%

900,001 – 1,000,000 12 0 0%

1,000,001 – 1,250,000 12 6 50%

1,250,000 – 1,500,000 3 4 133%

1,500,001+ 11 1 9%

Totals 289 141 49%

LISTING AND SALES ACTIVITY BY PRICE SEGMENTSales-to-New- Listings Ratio


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Sales

Price


Days

60

50

40

30

20

10

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23

10

24

14

33

15

28

10

21

10

25

15

January 150 165 10.0%February 193 141 -26.9%March 255 160 -37.3%April 227 141 -37.9%May June Total 825 608 -26.3%


$537,711

$515,150

$579,636

$561,500

$605,776

$586,000

$645,591

$570,000

$646,325

$619,000

$631,056

$589,000

THE REAL RICHMOND RESULTS: APR 2018 THE REAL NEIGHBOURHOOD RESULTS: APR 2018


MAY - APARTMENTS /CONDOS

January 150 165 10.0%February 193 141 -26.9%March 255 161 -36.9%April 227 183 -19.4%May 260 126 -51.5%June Total 1,085 776 -28.5%





Boyd Park 3 $463,600 0.07 5.65

Bridgeport RI 2 $784,800 -0.23 6.41

Brighouse 42 $661,500 -5.88 -1.88

Brighouse South 26 $599,000 -0.27 0.4

Broadmoor 1 $507,900 0 6.07

East Cambie 0 $500,700 1.3 10.06

East Richmond 2 $819,600 -0.94 4.82

Garden City 0 $459,700 1.13 5.69

Granville 0 $263,700 0.07 7.12

Ironwood 0 $675,800 1.03 6.99

McLennan North 9 $786,000 3.26 9.39

Riverdale RI 6 $597,600 1.15 3.08

Seafair 0 $457,900 0 5.67

South Arm 3 $324,800 0.24 6.51

Steveston North 0 $456,100 0 6.74

Steveston South 12 $558,700 0.17 1.13

West Cambie 17 $723,800 -0.02 6.24

Combined Total 126 $670,700 -1.95 1.96

FAITH’S KEY INSIGHTS:n In May 345 new listings for condo apartments were added to the

Richmond market, the highest level in more than a year. At the same time, 3,425 new condo apartments were under construction in the city and 693 new apartments were completed, 216 of which remained unsold. Yet sales of Richmond condos fell 51.5% from May of 2017 to 126, the lowest level in five months. Studies show that 24% of pre-sale condominiums in Richmond are being purchased by foreign buyers, so the recent increase in B.C.’s foreign-home buyer tax to 20% could have a greater affect on sales of both new and resale condos here than elsewhere in Metro Vancouver.

n The rising condo inventory is putting downward pressure on Richmond condo prices, with benchmark values in May nearly 2% below April, the first month-over-month price decline in at least two years. Condo sellers are now competing in a market where the sales-to-new-listing ratio has fallen to 37% and there are a lot of more listings available. Sellers have to be precise in their list price; and they must have their property showroom ready for viewing, and they should be patient. It is now taking an average of 20 days for a new listing to sell.

n With the benchmark price of a Richmond condo up 21% from a year ago and the rental vacancy rate near zero, investors remain active, especially for lower-priced condos. In May, for example, 28 buyers purchased a Richmond condo for $450,000 or less and we suspect many of these were savvy, long-term investors who recognize a buyer’s market and are eager to take advantage.

$660,000$640,000 $620,000 $600,000 $580,000$560,000 $540,000


0 – 200,000 0 0 0

200,001 – 250,000 3 2 67%

250,001 – 300,000 3 1 33%

300,001 – 350,000 7 3 43%

350,001 – 400,000 15 12 80%

400,001 – 450,000 24 10 42%

450,001 – 500,000 22 9 41%

500,001 – 550,000 31 16 52%

550,001 – 600,000 41 7 17%

601,000 – 700,000 75 33 44%

700,001 – 800,000 55 12 22%

800,001 – 900,000 24 9 38%

900,001 – 1,000,000 20 3 15%

1,000,001 – 1,250,000 12 6 50%

1,250,000 – 1,500,000 6 2 33%

1,500,001+ 7 1 14%

Totals 345 126 37%



– Me

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Sales

Price


Days

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50

40

30

20

10

5


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Mark

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24

14

33

15

28

10

21

10

25

15

22

13

$579,636

$561,500

$605,776

$586,000

$645,591

$570,000

$646,325

$619,000

$631,056

$589,000

$639,809

$610,000

THE REAL RICHMOND RESULTS: MAY 2018 THE REAL NEIGHBOURHOOD RESULTS: MAY 2018


JUNE - APARTMENTS /CONDOS

Janaury 150 165 10.0%February 193 141 -26.9%March 255 161 -36.9%April 227 183 -19.4%May 260 167 -35.8%June 224 118 -51.6%Total 1,309 935 -28.6%





Boyd Park 4 $468,300 1.02 7.64

Bridgeport RI 0 $785,100 0.03 2.33

Brighouse 42 $689,600 4.25 5.93

Brighouse South 18 $605,000 1 -1.43

Broadmoor 0 $511,700 0.75 3.12

East Cambie 0 $505,800 1.01 2.29

East Richmond 2 $817,000 -0.32 0.93

Garden City 0 $452,400 -1.59 3.87

Granville 2 $266,700 1.13 3.95

Ironwood 3 $679,700 0.59 2.1

McLennan North 10 $798,900 1.64 7.51

Riverdale RI 2 $606,600 1.51 7.47

Seafair 0 $463,500 1.22 7.72

South Arm 5 $321,500 -1.01 2.52

Steveston North 1 $470,600 3.17 9.24

Steveston South 12 $555,700 -0.54 -0.75

West Cambie 17 $724,100 0.05 2.43

Combined Total 118 $683,800 1.96 3.66

FAITH’S KEY INSIGHTS:n Construction of new strata units in Richmond, 80% of them condo

apartments, reached 1,241 units as of the end of June, up from 682 in the first half of last year. Developers recognize the inherent fundamentals of Richmond that have made it one of the strongest condo markets in Metro Vancouver in recent years. But I advise condo buyers to look first at the resale condo sector, where there has seldom been a better selection. In June, 308 new listings came to the market and at least some of the 343 new listings in May are likely still available, since it now takes an average of 22 days for a new listing to sell. There is a condo for every budget in Richmond now, with a June price range of from $200,000 and less to $1.5 million or more. New condo apartments, by comparison, are mostly coming in at higher pre-sale prices due to rising land and construction costs.

n Apparently first-time buyers were very active in June across Richmond, seeking lower-cost condo apartments. Thirty-five buyers paid $450,000 or less for a Richmond condo in June, snapping up nearly 100% of all new listings in that price bracket. With benchmark condo prices rising by 1.9% a month, this may represent one of the smartest real estate buys in the region. The lowest-cost Richmond condos in June were in the Granville neighbourhood, at $266,7090; Boyd Park, at $463,800; and Steveston North, at a benchmark of $470,600. Brighouse, Richmond’s bustling downtown, had the most condo sales, with 42 at a benchmark price of $689,600, followed by Brighouse south with 18 sales at $605,000.

$660,000$640,000 $620,000 $600,000 $580,000$560,000 $540,000


0 – 200,000 1 0 0%

200,001 – 250,000 3 2 67%

250,001 – 300,000 1 3 300%

300,001 – 350,000 7 6 86%

350,001 – 400,000 15 6 40%

400,001 – 450,000 23 18 78%

450,001 – 500,000 33 16 48%

500,001 – 550,000 31 19 61%

550,001 – 600,000 34 11 32%

601,000 – 700,000 72 23 32%

700,001 – 800,000 41 8 20%

800,001 – 900,000 17 4 24%

900,001 – 1,000,000 16 2 13%

1,000,001 – 1,250,000 4 0 0%

1,250,000 – 1,500,000 6 0 0%

1,500,001+ 4 0 0%

Totals 308 118 38%



– Me

dian S

ales P

rice

– Av

erage

Sales

Price


Days

60

50

40

30

20

10

5


– Me

dian D

ays o

n Mark

et –

Avera

ge Da

ys on

Mark

et


33

15

28

10

21

10

25

15

22

13

22

12

$605,776

$586,000

$645,591

$570,000

$646,325

$619,000

$631,056

$589,000

$639,809

$610,000$540,276

$533,691

THE REAL RICHMOND RESULTS: JUNE 2018 THE REAL NEIGHBOURHOOD RESULTS: JUNE 2018


THE REAL NEIGHBOURHOOD RESULTS: Q2 2018

Q2 - APARTMENTS /CONDOS


0 – 200,000 1 0 0%

200,001 – 250,000 10 5 50%

250,001 – 300,000 8 6 75%

300,001 – 350,000 22 12 55%

350,001 – 400,000 47 37 79%

400,001 – 450,000 67 45 67%

450,001 – 500,000 88 43 49%

500,001 – 550,000 92 72 78%

550,001 – 600,000 100 37 37%

601,000 – 700,000 204 97 48%

700,001 – 800,000 126 48 38%

800,001 – 900,000 69 35 51%

900,001 – 1,000,000 46 7 15%

1,000,001 – 1,250,000 27 14 52%

1,250,000 – 1,500,000 14 8 57%

1,500,001+ 22 2 9%

Totals 943 468 50%


THE REAL RICHMOND RESULTS: Q2 2018

FAITH’S KEY INSIGHTS:n Construction cranes will be pecking and swinging above Richmond

this year and for years to come as the city prepares to host one of the biggest condo building phases in years. In the first six months of this year 1,241 multi-family units started in Richmond, double the pace in the first half of 2017. And massive projects like the 2,000-unit Richmond Centre redevelopment haven’t even started yet. This is an indication of the confidence in the Richmond condominium market that is so widespread in the development community.

n While new condos are sleek and exciting, I recommend buyers stick to the resale condo market in Richmond right now. A few reasons: there is no GST on resale units; the price of new condos are higher because of rising land and construction costs; and the selection of resale condos is so terrific right now, with the inventory as of June up 88% from a year earlier. In Q2, 943 new listings for condos were added to the market, including 435 listed at $600,000 or less. With benchmark condo prices up 3.6% from Q1 to $638,000 (that is a cash advance of around $25,000 in three months), it can pay to buy a Richmond resale condo today.

n Richmond condo sellers are seeing a balanced market, with the sales-to-new-listing ratio at 50% in Q2 and sales being seen at every price point. The most buyer action is in the $600,000 to $700,000 price range, but two-dozen Richmond condos sold for $1 million or more in Q2. Sellers should expect to see condo apartment demand increasing into the summer.

SALES PRICE QUARTERLY TREND$700,000 $650,000 $600,000$550,000$500,000$450,000$400,000

$530,761

$499,200

$544,486

$528,000

$558,400

$535,000

$630,789

$585,000

$611,290

$572,250

Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 – Me

dian S

ales P

rice

– Av

erage

Sales

Price

DAYS ON MARKET QUARTERLY TREND60

50

40

30

20

10

0

21

11

23

11

27

11

23

13

17

9

Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 – Me

dian D

ays o

n Mark

et –

Avera

ge Da

ys on

Mark

et

Days

Sales-to-New- Listings Ratio


Q1

Q2

Q3


2017598

731

1,329

2018467

468

935

Change (%)

-21.9%

-36.0%

-29.6%




Boyd Park 13 $468,300 7.64 35.97

Bridgeport RI 3 $785,100 2.33 20.47

Brighouse 197 $689,600 5.93 18.36

Brighouse South 75 $605,000 -1.43 18.11

Broadmoor 4 $511,700 3.12 22.04

East Cambie 1 $505,800 2.29 26.77

East Richmond 4 $817,000 0.93 19.54

Garden City 0 $452,400 3.87 18.75

Granville 3 $266,700 3.95 26.66

Ironwood 5 $679,700 2.1 25.11

McLennan North 26 $798,900 7.51 18.3

Riverdale RI 14 $606,600 7.47 27.44

Seafair 0 $463,500 7.72 36.24

South Arm 10 $321,500 2.52 20.97

Steveston North 2 $470,600 9.24 36.6

Steveston South 35 $555,700 -0.75 9.05

West Cambie 70 $724,100 2.43 21.14

Combined Total 468 $683,800 3.66 19.44

TO GET STARTEDFirst, visit FaithWilsonGroup.com for extensive details about: Vancouver area neighbourhoods from dog parks to home pricing by property type; our 360 degree Performance Promise; our exclusive monthly Market Update research publications; our awards & achievements and much, much more.Then, call me at 604-224-5277 or 1-855-760-6886, or email me at [email protected]

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