With Covid, restrictions easing, the country plans to welcome more than 1.2 million newcomers over a 3-year period starting in 2021. As required by immigration, permanent residents are bringing over money for their settlement in their adopted country, so they will not be a financial burden for the government!
"while the demand-supply equation has eased a little bit, it has not done so sufficiently to produce a decline in prices" Robert Hogue RBC Economist ..... "[..] if there was some fear out there that now we are in a bubble and it may burst, our view is that a factor like immigration resuming will provide some support for the housing market"
Focusing on the Richmond Single Family Market:
Prices: May shows a continued trend of a sellers’ market with an average sales ratio of 26% +5% from June
Most Active prices bands remained at $1.0m - $1.25m with a 500% rales ratio, (more sales than new listings) $1.25m - $1.5m with +46% sales ratio and $1.5 to $1.75m with +23% sales ratio
Average sale price: dipped from $1,742,000 to $1,680,000 from May 2021, and the $/sf -13% from $720/sf to $628sf.
No. of Sales: We see an increase in sales +15% with sales increasing slightly from 130 - 149, but still -82 from our peak in March with 231 sales
Top 3 neighbourhoods selling well are Sea Island, Mclennan North and Steveston South
Condos:
We are still seeing a sellers’ market with 34% sales ratio -6% from last month.
Most activity has remained at $400,000 to $500,000 with 54% sales ratio
Average sale price: +3% in the last month from $685,000 to $705,000 and we saw a -4% change in $/sf from $725/sf to $696/sf.
With an decrease in sales but an increase in price per sq tt, buyers are making decisions to purchase units with less square feet to get into the market. We also saw 3 sales over $1.5 - $2.5m which also reflect in the price per sq ft.
Top Performing Neighbourhoods: East Cambie, Terra Nova, Westwind
Keeping an eye on Court Ordered Sales and Foreclosures, there are 29 house (+4 from May) and 43 condo listings (+6 from May)
Interesting Reads:
I hope you find this helpful, but should you have any questions please don’t hesitate to ask.
My best,
Shali