The Unwind Begins!!!
With sellers becoming increasingly active and new stress test rates coming into play June 1st, we could be beginning to see the shift from the peak of the market.
Last month’s sales were -14% from the 5,708 homes sold in March 2021.With 8,287 homes listed, it is the highest listing total ever recorded in the region in April
We are seeing less activity, less bids in multiple offer purchases, compared to in February, and we are starting to see the price growth steadily unwinding. The complete affects of variables including, the introduction of the National Non-resident tax, the new Stress Test rates, the inevitable increase of rates possibly being prepped for 2022 vs 2023 will be more clear as we enter Q3 and see how new buyers entering the market will make future decisions.
Focusing on the Richmond Single Family Market:
Prices: March shows a continued trend of a sellers’ market with an average sales ratio of 30% -17% from March and -15% from February.
Most Active prices bands increased remain $1.25 - $1.5 m but with a 69% rales ration -22% from March and - $1.5 to $1.75m with -45% sales ratio from 91% to 46%
Average sale price:-5% from $1,850,000 to $1,751,000 from March 2021, and the $/sf -1% from $689/sf to $681sf. These conditions are very similar to February 2021, when average price was $1,604,000.
No. of Sales: Not surprisingly, we are starting to see a sharp drop in sales -26% with sales decreasing from 213 to 170.
Top 3 neighbourhoods selling well are Steveston Village, South Arm, Seafair
Condos:
We are seeing a sellers’ market with 56% sales ratio -8% from last month.
Most activity with110% sales ratio has dropped further from $400,000 to $500,000 to $300,000 - $400,000.
Average sale price: +2% in the last month from $694,500 to $709,000 as we saw a -3% change in $/sf from $707/sf to $684/sf.
Drop in Active price band with a increase in price/sf, shows buyers are paying more for smaller spaces as they are contained by inventory prices and mortgage rates. They buyers are typically 1st time buyers, who can be the most sensitive to the rates and the increase in the upcoming stress tests
Top Performing Neighbourhoods: Saunders, Westwind, Terra Nova
Keeping an eye on Court Ordered Sales and Foreclosures, there are 29 house (+7 from March) and 33 condo listings (+1 from March)