The Market Watch #4

Richmond's Real Estate Trends.

Author

Gerald Chan
July 24, 2024

0️⃣4️⃣

Hi All

Here is our monthly shot of ☕️ Real Estate Espresso - a list of what I’m pondering, exploring and ofcourse Updates on our Local Real Estate!

Feel free to forward along if the spirit moves you. Let’s catch up again on September 4th 2024 when the Bank of Canada makes it next Interest Rate Announcement.

Ciao 👋
Gerald ;)

PS: This issue is sponsored by non other than … Gerald Chan Realtor !

BANK OF CANADA UPDATE
🇨🇦 The Bank of Canada takes it’s foot off the brakes a bit more - 4.5%

The Real Estate Market has been “crawling” lately, and the .25% drop in the Bank of Canada rate is unlikely to make a huge difference.

The issues we face were long in the making so there is no magic bullet to solve it overnight.

There is so much truth in the thinking that if what we are doing isn’t working then we need to change what we’re doing - both from a policy and on a personal level. On a personal level because we need to figure a way out of our own situation ourselves 🤔

🇨🇦 Bank of Canada Rate July 2024

VANCOUVER, RICHMOND AND BURNABY HOME PRICES
What is a “Typical” Single Home Selling for?

The Home Price Index (HPI) is a useful tool in understanding price trends. It is generated using variables like: Property Type, Geographic Location, Home and Lot Size, Age of home, number of Bedrooms and Bathrooms, Market Conditions and so on, to create a “Composite Index” by which we can study market trends over time.

The graph above lumps single family, townhouse, condo, etc. properties together to come up with a single value for a given city. If we break out the property types we will probably see a different graph. Nevertheless this will do for now.

What we are seeing is that prices as a whole look very similar to where they were last year. The market has been slow and prices haven’t increased significantly. Not surprising since interest rates have been high coupled with high prices.

This begs the question, where is the market heading. For a glimpse, the Sales to Actives Ratio graph below 👇offers some hints.

BUYER, SELLER OR BALANCED MARKET?
What does the Data Show?

The Sales to Actives Ratio is another important tool we can use to measure Market Performance. It shows the relationship between the number of homes sold and the homes on the market in a given period.

If the ratio is between 12% and 20% for an extended period, analysts believe the Market is Balanced, meaning we do not expect to see any significant price increases or price drops in that period.

If the ratio is below 12% over an extended period, analyst believe this is a Buyers Market since there are more homes on the market than there are Buyers. In this market we can expect the price of homes to decrease.

If the ratio is above 20% over an extended period, analyst believe this is a Sellers Market since there are more Buyers on the market than there are homes listed. In this market we can expect the price of homes to increase.

We experience a mini Sellers Market in the first 4-months of the year but we are heading back into a Balanced Market suggesting (according to analysts) we are not expecting to see significant price increases in the coming months.

If we dive deeper into specific markets and property types, we tend to see a slightly different picture. If you’d like a review of the area you live in I’ll be happy to check for you

IN THE NEWS
What is Bill 44

High home prices and unaffordable rents is the calling card of BC, so much so that people are finding it better to move not only to the outskirts of the cities but completely out of the province.

RICHMOND FOODCOURTS
Parker Place.

The foodcourt at Parker Place attracts a very loyal clientele of regulars. The cuisine definitely appeals more to the Asian palate. The atmosphere is relaxed and unless your taste is attuned to authentic Asian style cooking this may not be your first choice 🤣. Prices are reasonable but the quality at some of the stores are “suspect”

You’ll also need to bring a translator because not all store owners speak English.

I’ve got to say, there’s a meat store located close to the —- entrance that sells the Best Roast Pork and Roast Duck. What I like about these guys is their pleasant attitude. The fact that I don’t speak good Cantonese is not an issue and they have always been very accommodating and helpful 🏆

Be aware that many vendors do not accept credit cards so B.C. - bring cash!

🥢🍜 Parker Place Foodcourt