Richmond Condo News

Pre-sale buyers who are not able or willing to complete their contracts can be sued by the developers. Some of these buyers are leaving large deposits and walking away from sums as high as $40,000.

There is no accurate figure as what proportion of these pre-sale buyers are speculators. Some people in the industry estimate that as high as 70% of these pre-sale condo buyers could be speculators. With banks tightening on lending, some buyers are not able to get financing, while others simply no longer want to complete the deals.

"There's a lot people there to make a quick profit, and it backfired on them," said Mario Mainella, a vice-president at Bowra, whose firm is now contemplating legal action against some of those owners.

"The way most contacts are written, the developers can pursue a damages claim if the unit is sold for less than what it was sold for originally," Mr. Mainella said.

Read the full article here on "Cracks appearing in condo land".

Another recent report by Merrill Lynch & Co "Housing market ‘alarms' Merrill" quoted: 

"Falling prices, overbuilding and too much unsold inventory in Canada are creating a trend similar to that in the United States a couple of years ago, Merrill economists David Wolf and Carolyn Kwan said in a research note.

Merrill made headlines recently with a report suggesting Canada's high household deficit level could make it vulnerable to a U.S.-style housing collapse".

Analysts agree that B.C.'s housing market is taking a beating, with sales slowing and inventory rising in the wake of global economic upheavals.

The extend of the price correction is opened to debate. Some are predicting a 30% or more price correction. The tight credit situation, cautious lending by the banks, over-extended borrowers, slumping stock market and over supply of housing units all will exacerbate the housing market.

If you are thinking of selling or buying, you need to know how best to deal with your situation. Not selling now could result in further erosion in the price you can get for your home. If you are buying, you need to know if you should wait a little longer or get ready and look out for a great deal coming your way. 

For more insights on the current real estate market in Greater Vancouver, you an email me or call me at 604-721-4817 for a discussion.

 

Richmond Real Estate Pricing Trend

The most common question asked by home buyers on the value of a home is the relationship between current market price and the city assessment value of a property.

The market value of a detached home is affected greatly by the location, home condition, and improvements done to the house. Homes that are more desirable will command higher selling prices. The city assessment value being an aggregrate valuation of similar homes in the neighborhood, will not reflect the dsirability of a home to a buyer.

What can the city assessment value tells us?

The city assessment value being a previous year's value is a lagging indicator. City assessment value tends to be lower than the market value in a rising market. During the boom years from 2005 to 2007, the selling prices for most homes were found to be 12% to 15% above the city assessment values. Conversely, when home prices drop for a few months, the market values for homes sold may be lower than the city assessment values.

The following table helps to track the housing market values in relation to the assessment values.

Selection Criteria for comparison

The homes selected for this comparison were based on older homes located in West Richmond. The homes were over 25 years old and with lot sizes between 7,000 to 9,000 sq ft. These homes were sensitive to demand from home builders, and they helped to set the pricing trend based on builders' activities.

When home builders' were competing for building lots, they pushed up the selling prices for these homes. Up until April 2008, home builders were still actively buying up these older homes. These homes were torn down to be replaced by million dollar homes. Home prices for resale older homes peaked in the first quater of 2008.

Quarter	No. Homes	Av. List Price	Av. Sold Price	Av. City Value	% Var. Sold vs List price	% Var. Sold vs City value
Oct-Dec/07	24	$689,100	$680,100	$638,400	-1%	+7%
Jan-Mar/08	27	652,800	683,900	600,800	+5%	+14%
Apr-Jun/08	14	691,100	687,700	609,400	-2%	+13%
Jul-Sep/08	7	672,100	633,400	607,200	-6%	+4%
*Oct-Dec/08	13	614,500	574,400	614,500	-7%	-7%

Sample Size Limitations

The small number of sales registered for Jul-Sep/2008 could have skewed the comparison between market value and city assessment value.  The average selling price showed a drop of around 8% compared with the previous 3 qaurters.

Market Value Vs City Assessment Value

The average city assessment value for Oct-Dec/07 was skewed by more higher valued homes being sold during the period. The average home selling price for the the first and second quarter of 2008 were 14% to 13% higher than the city assessment value.

From March 2008 onwards, declining sales and widespread price reductions had resulted in the average selling price for these homes in the Jul-Sep/08 quarter averaging just 4% higher than the city assessment value. With housing trend continuing its decline, home prices are expected to slide lower. It is likely that many homes will be sold below city assessment values.

We will continue to monitor and report on the pricing trend each quarter.

Current real estate news for metro Vancouver and Fraser Valley can be viewed here.

* Updated on February 13/2009 - homes sold at 7% below city assessment value by the 4th quarter of 2008.

Richmond Housing Trend from total sales recorded since 1998 reached the highest number of homes sold in 2005. That year, the total number of homes sold were 4,335 units with a monthly average of 470 units. The 2-year moving average trend line indicated sales momentum was slowing down in 2006 and 2007. The trend line as shown on the chart below (up to September 2008) showed that 334 average monthly sale was 12% lower than the 380 trend line units.

The September home price decline as reported for Greater Vancouver was around 8%. Richmond will follow the general market, and a decline in the median price can be expected in the next few months. There are no positive news in the market and BC economy that will help to reverse this housing price decline.

Tracking The Sales

The July, August and September 2008 sales figures at 287, 178 and 234 units respectively were way off the mark, and fell to the 1998 to 2000 sales figures. Current market sentiment has changed dramatically from last year, and buyer confidence is lacking. More bad news are expected from the housing market. The media are expected to continue reporting the bad news, and the housing market will continue to adjust to current over-supply and dwindling demand from home buyers.

Prices Are Dropping

The housing market in Greater Vancouver is now in a buyer's market. Prices are trending down and there are many great buying opportunities for home buyers. Many sellers have reduced their asking prices to sell their homes. Those that are reluctant to reduce their selling prices and priced their homes according to today's market, will have a tough time selling their homes. Many areas are already reporting home prices coming down by as much as 10% to 15% compared to 2007 home prices.

Should You Buy Now?

You should position yourself to make a quick move if and when you can get a great deal. There are definitely many more buying opportunities now. Whether you should buy now or wait a little longer depends on your own comfort level. You should watch the market closely. Only when you are feeling comforatable with the market, you make your move to buy.

For more information on the market, you can contact me at 604-721-4817 or email me.

NOTE: This representation is based in whole or in part on data generated by the Real Estate Boards of Greater Vancouver

Richmond BC Real Estate

Declining Market

Since April, 2008, home sales activities in Richmond dropped significantly. Home prices were trending down as there were more sellers than buyers in the market place.

Another housing market tracking and pricing charts presented by Brian Ripley showed that Edmonton's home prices peaked in May, 2007 and Calgary followed in June, 2007. Vancouver's top was recorded in June, 2008 and since then prices had been declining significantly for July, August and September.

The price correction will continue until demand picks up. This will happen when prices reach a level when home buyers are feeling comfortable to get back into the market.

Presently, Richmond inventory is still very high, with around 11 months supply of homes. Unless sales improve or the number of listings drop significantly, the list/sale ratio will take a while to reach a more balance market... around 6 months inventory.

                           Data from Real Estate Board of Greater Vancouver

Market Update

Greater Vancouver housing sales were down 43.2% in September from a year earlier, while the average sale price dropped 8% to $535,598 over the last year.

Greg Klump, chief economist with CREA said "As the Canadian market continues to cool, houses will stay on the market longer. Canadian sellers are not under financial duress to sell so many will just pull their homes off the market if they don't get their price and that will result in a continuing decline in listings.

Canadian homebuyers should not expect to see the kind of price correction that's underway in the U.S. where overly indebted homeowners are selling into a housing market where foreclosures and the number of newly constructed unoccupied homes are increasing."

Click here to read the article.

What you should do in a buyer’s market?

If you are a seller, you have to be realistic with your expectation and adapt to the market. You need to know the sales and inventory in the market place. Before you list your home on the market, find out how many months an average home takes to sell, and monitor the market activities closely.

If there are 2,500 properties on the market and 250 are selling, only 10% of the properties are selling for the month. Your home has to be at the top 10 % in the marketplace in order for your home is sold. When there are 10-month inventory in the market, your home priced priced similar to other homes will take 10 months to sell.

So, to sell your home in a buyer’s market, it has to be priced right and marketed well. A well-priced home get sold more quickly. Click here to find out how I can help you sell your home in 30 days or less.

If you are a home buyer, you need to know whether the home you are buying is a good buy. This could be a good buying opportunity as there are more choices, sellers are more motivated to sell and home prices are more attractive now.

For more information on the real estate market in Greater Vancouver, and Richmond Vancouver and Burnaby in particular, you can follow my blog postings here.

 

Mellinium Water Vancouver's Olympic Village  - Trouble Ahead?

As the credit crisis south of the border begins to creep north, concerns are mounting over the impact it may already be having on construction of the athletes' village for the 2010 Winter Games.

Last week, members of Vancouver's city council held an emergency, in-camera meeting to get an update on the project. Much of the discussion revolved around the city's obligation in the event the developer, Millennium Development Corp., can't meet demands from the bank because of massive cost overruns, according to sources briefed on the meeting.

Click here to read the full article.

Another article in the Vancouver Sun "2010 Games in Crisis" raised concerns that B.C. taxpayers could be on the hook for about $1.5 billion.

Just a week ago, Denis Du Bios on October 03, 2008 published in Energy Priorities a glowing report "Vancouver 2010 Olympic Village" as a model for urban sustainability.

This South East Fales Creek land - once a mishmash of shipyards, sawmills and municipal incinerators had many past controversies. NANCY MACDONALD at Maclean's Magazine published on November 19, 2007 "New Condo Will Double as Vancouver's 2010 Olympic Village" gave an account on the project when the condos were released for sale in October 2007.

For more information on Millennium Water Condos, kindly contact James Wong at 604-721-4817 or email me.

Why Best of Richmond BC?

It is about time that Richmond residents write about the "Best of Richmond BC" and tell others why they nominate the restaurants, people, places, experiences, shops, etc.

As the subject is about the Best of Richmond BC, all submission are to be related to Richmond, BC.

Richmond's residents are welcomed to send in their articles, stories and photos.

Photographic enthusiasts are also encourage to submit their favorite pictures as a supplement to the "Best of Richmond".

Localism, Richmond BC

The nomination will be posted on "Localism.com/bc/Richmond". The Administrator for this online website is James Wong, a long time resident of Richmond. All appropriate articles will be processed and posted on

Merchant Sponsors

Local merchants are encouraged to sponsor and provide special discounts, coupons or gift certificates to encourage readers to write in to tell their stories and why they think their nomination is the best. The benefits to local merchants are more online exposure and buzz about their businesses. Where appropriate, links may be provided to direct readers to visit the merchants websites.

Local merchants are encouraged to test drive and find out how "Localism.com/bc/Richmond" can increase their online traffic.

Kindly email all articles and attachments to Localism Richmond BC

Changes are coming to Richmond City Centre

Two years ago, ALEXIS ROOHANI wrote:

The rush to Richmond

Planners are preparing for a tripling of the population over the next 25 years as Vancouver's housing refugees flock to the suburb in search of affordability and a better quality of life, writes ALEXIS ROOHANI

ALEXIS ROOHANI Special to The Globe and Mail POSTED ON 06/10/06

Richmond is coming of age, and its claim to fame is beginning to reach well beyond its reputation for prolific shopping centres and tasty Chinese cuisine.

"Richmond has a higher profile. You think about moving here now," says Tracy Lakeman, a veteran of the Strathcona area who moved to Richmond with her partner in 2005, buying a home in Richmond's Seafair neighbourhood. "It's not so much a suburb of Vancouver any more; it's becoming a city in its own right."

Moreover, says Ms. Lakeman, now Executive Director of Tourism Richmond, all the development hasn't erased the area's other pleasures. "When I'm out walking, I'm watching bald eagles, hawks, coyotes, blue herons, ducks..."

Home builders have taken note.

Hani Lammam, Vice President of Development and Acquisitions for Cressey Development Corp., has watched affordability turn Richmond into one of the Lower Mainland's biggest real estate hot spots.

"We see a higher demand for real estate in Richmond than we do in Vancouver," says Mr. Lammam. "The values are better in Richmond because land is cheaper, and yet the quality of the product is comparable."
As one of Richmond's foremost developers, Cressey is responsible for kick-starting McLennan North, a major developmental collaboration with the City of Richmond that has evolved into one of the city's most coveted neighbourhoods.

"Because of Richmond's demographics and geographic advantages, we predicted that it would be a success," says Mr. Lammam of the company's decision to spearhead the master planning for McLennan North 12 years ago. "It had everything going for it."

Whether you chalk it up to clairvoyance or just prescience borne of proper due diligence, Cressey could hardly ask for a better return on its wager. The July release of Mandalay and Brandywine Lane, Cressey's crowning residential projects in McLennan North, saw more than 250 realtors in attendance, hinting at the high level of demand in Richmond's real estate market.

"It's been a tremendous success," Mr. Lammam says, "way beyond our expectations."

Sassan Pourfar, who bought into Brandywine Lane in July, chose Richmond specifically for what it offers to homeowners who don't want to sacrifice quality and lifestyle for the sake of affordability.

"Compared to other places around Vancouver, the price of living [in Richmond] is much less," says Mr. Pourfar, who researched the Lower Mainland area extensively before moving from Iran and settling in Richmond with his wife in 2001. Since then, Mr. Pourfar has purchased two properties in the city, experiences he believes provided him with a better return on his investment.

"If I wanted to buy something in Vancouver for the same cost [$600,000], I'd have to buy a 40 or 50 year-old house, and even then I'd have to redevelop it," says Mr. Pourfar. "Based on what I expect in terms of quality and design, there's no comparison for what I found with Cressey and for the price I got in Richmond."

Strong market values may be a draw factor, but Richmond's ability to satisfy diverse lifestyle needs is ultimately what keeps people in the city. The city has attempted to provide that by implementing a strict plan for densification.

"We are taking densification very seriously," says Terry Crowe, Manager of Policy Planning for the City of Richmond. "We only have a limited amount of land in Richmond that we can effectively use for urban growth. If we want to continue to have an agricultural land reserve and a sustainable region, we have to densify the areas that are designated urban now as efficiently as we can."

Urban density has not characteristically been one of Richmond's calling cards, a fact best illustrated by the uninspiring strip malls that dominate many of the city's main drags.

But with plans in place for supporting 120,000 people in the city centre by 2031 -- an increase of 80,000 over the area's current population -- it's safe to say that the times are a'changing, a point that will only be reinforced by the introduction of rapid transit over the next few years.

Focusing densification primarily on arterial roads and shopping districts (in order to protect the city's fiercely guarded single-family neighbourhoods), the city's planning department is also committed to building five high-density urban villages around each of Richmond's scheduled rapid transit stations.

These villages will be designed as individual live/work/play communities, and will strive in their planning to maximize transit ridership and effectively eliminate the need to own a vehicle.

While a vibrant and diverse downtown core satisfies the requirements of a complete community, What makes Richmond appealing to many residents are the city's 1,500 acres of open park space and comprehensive network of recreational facilities -- assets that city planners are making every effort to balance with growth.

"We have to grow to make the community livable at the end of the day, and what makes it livable are parks and other amenities," says Mr. Crowe.
A livable city also means job opportunities, which proves to be yet another area of surprising wealth for Richmond. According to Craig Jones, Executive Director for the Richmond Chamber of Commerce, current figures estimate a total of 1.5 jobs per resident, a ratio that even Vancouver can't boast.

"We've got a number of industries that have decided to locate here because of the talent pool that's available and the city's proximity to the airport, the U.S. border, and the local port authorities," Mr. Jones says.
Several industry hubs have been cultivated by the city over the past few decades, including high-tech, agriculture, biotech, manufacturing, transportation, and the overflow from Vancouver's diminished warehousing sector.

"Companies like to locate here because it's affordable for their staff to live and work in their community," explains Mr. Jones of the 12,000 companies that call Richmond home. "In Vancouver, that's changed dramatically."

Another Major City Centre Project Approved

A new Richmond City Centre project located at the current site of Lansdowne GM’s car dealership was proposed to the city’s planning committee, and councillors unanimously agreed with a staff recommendation to support a rezoning bid by W.T. Leung Architects. The proposed development is consisting of a new 33,000-square-foot community centre - City Centre South Community Centre, a 22,000-square-foot campus for Trinity Western University and a $1-billion residential development, comprising five high-rises with nearly 600 apartments and dozens of stacked townhouses.

There are many older and newer resale condos available for sale in and around Richmond City Centre. Click here to view some of the Richmond City Centre condo available for sale.

For more inforamtion on buying a condo in Rihmond City Centre, kindly contact me at 604-721-4817 or email me.

As reported by CBC News

A Statistics Canada study that shows people in Richmond, B.C., have a higher life-expectancy than those in Japan has stumped at least one expert.

The report Health Indicators, released Tuesday, shows that babies born in Richmond today can expect to live to an impressive average of 83.4 years, two years more than the average in Japan, which tops the World Health Organization's rankings.

"That's ridiculously high," John Hsieh, a professor of biostatistics at New York's University of Rochester, told CBC News Online. Hsieh said that Richmond's average age means that there are many people living to almost 100 and very few who are dying in their 60s.

Click here to read the full article

Relocating To Richmond

If your are retiring, you may want to consider settling down in Richmond. Richmond is a vibrant, safe and colorful City. It has the lay-back rural farming atmosphere all around it...you can take life at your own pace, while all the modern convenience, amenities and shoppings are just a short distance from your home.

There are many neighborhoods like Steveston Village, Terra Nova, Garden City Park, Minoru Blvd, etc with great amenities to support your lifestyle needs.

If you like to have more information on trading up or down sizing to relocate to Richmond, you are welcomed to contact me for information on the real estate market of Richmond.

Vancouver Spectrum Condos, Yaletown

Spectrum 1 - 111 West Georgia Street, 30 levels - 221 condos

Spectrum 2 - 668 Citadel Parade, 27 levels - 222 condos

Spectrum 3 - 131 Regiment Square, 26 levels - 211 condos

Spectrum 4 - 602 Citadel Parade, 32 levels - 245 condos

The last 2 of Spectrum Tower 3 & 4 of four towers were completed by the fall of 2007. The neighborhood came to live when Costco opened it's Downtown Vancouver store in 2006. Presale condo buyers were the lucky ones who recognized the incredible values Spectrum condos had to offer.

The presale condos were selling at $129,000 for the 483 sq ft studio units and up to $375,000 for the larger 958 sq ft 2 bedroom + den condos. Click here for price range for resale Spectrum condos over the past 12 months - up to September 30, 2008.

Condo owners and renters moved in by the fall of 2007. The resale prices for studios reached as high as $313,000 and the higest price 2 bedroom + den condos were selling close to $599,000. The great demand for Spectrum condos spurred condo buyers' interest on other developments around International Village/Tinseltown and Bosa's Brighton Towers at Citigate.

Transformation Of Downtown Vancouver

As part of Concord Pacific Group's Spectrum project, Costco bought the 127,000-square-foot store and successfully opened for business in 2006. Access to this new Costco Downtown Vancouver store is from Expo Boulevard. This new Costco warehouse store is a feat of engineering. The store is bordered by GM Place, the Georgia viaduct and the eastern end of Vancouver's downtown. 

Concord Pacific has also incorporated an elevator and stairway that connect the store to the Stadium-Chinatown SkyTrain station above it. This Costco store has two floors of parking below it and two floors of parking above it. The four Spectrum Towers with with 900 condos perched above it.

This Costco store is a very valuable piece of real estate - Downtown Vancouver is one of the most densely populated areas in North America. "It is the most unique Costco in the world," said Robin Ross, Costco's regional marketing manager for Western Canada. An expanded deli selection of "home ready meals" catering to the shopping needs of singles, couples and young families living in Downtown Vancouver.

Click here to read the story : "Warehouse retail chain opens doors of its most urban outlet in North American to a horde"

Is this a good time to buy a condo in Downtown Vancouver? There answer depends on whether you feel comfortable to make the move. You can view Vancouver Downtown West condos for sale here.

If you like to have more information on some of the great buying opportunities at Spectrum towers, kindly call me at 604-721-4817 or email me.