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The Richmond new condos market is taking a turn for the worst in July if the weak sale trend continue. Presently, there are close to 1,000 condo/apartment listed fro sale in Richmond. The average condo sales in Richmond over the past 6 months was 153 units.
More than 50% of these listings are under 5 years old (as per mls record there were 520 units listed for sale as of July 22, 2008). The past 6 months average monthly sale for condos less than 5 years old was 58. At this rate of sale, it will take 9 months to sell off all the condos listed on the market.
The sales todate for condos under 5 years old sold as per mls record was 12 units. The slowing down in the sales of condos will put pressure of condo prices.
New Condos Under Construction
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There will be many more new condos completing over the next 12 months. With the dismal sale of 12 units so far in July, there will be too many condos for too few buyers. There were already reports of condo sellers in Richmond losing money selling their presale condos through assignment of their contracts.
Those who bought their new condos after 2006 with anticipation of price appreciation, may have to hold on to their investments with little hope for price gain. The market for resale new condos or assignment sales is expected to be adversely affected by the slow down.
Most areas in Greaater Vancouver and Fraser Valley are now having over 6 months supply of inventory. This put pressure on home sellers to reduce their selling prices in order to sell their homes.
