Richmond Real Estate Market Report: Price Pressure By Area

Blog by Arnold Shuchat | February 14th, 2013

Today I am going to briefly examine another metric I use in negotiation, but on a macro level.  There has been a great deal of discussion in blogs and forums around the issue of the seller's requirement to sell.  "Sure, the property is listed, but they don't really need to sell," has been bandied about for the last few months.  

Well I am going to go out on a limb here and suggest that for most of us, if we owned a vacant home, we really would need to sell it. Is the property vacant?  I don't think it would be a stretch for many to accept that a vacant property is one we would need to sell.  It could be vacant due to a death or to an emmigration.  In either case it doesn't bode well for bargaining strength.

I primarilly focus on the Richmond market on this blog, but I felt it necessary to compare Richmond to the rest of the Real Estate Board areas to see if my thinking was correct, that there are too many vacant homes for sale in Richmond, and that it just doesn't feel "normal".

Here is a summary of vacancies by area ranked from highest to lowest for Single Family Homes  only. While I often produce specific addresses, I do not wish to be a reference source for break and enters, nor do I wish to kill the golden goose. Consequently, no such list will be produced here.  I am happy to work through specific listings with buyers who wish to get in touch with me.

As for the local vacancy champion, Richmond, the specifics of these 226 vacancies are startling:
The median price of these vacancies is $1,580,000.
There are 49 properties asking over $2,000,000
61 properties asking between $1,6000,000-$2,000,000
16 properties asking between $1,400,000-$1,600,000
23 properties asking between $1,200,000-$1,400,000
19 homes asking between $1,000,000-1,200,000
34 homes asking between $800,000-$1,000,000
24 homes asking below $800,000

As is apparent, the listings are skewed disproportionately towards high end properties and that is where the deals would be.
Tsawwassen, Pitt Meadows... "Ni men hao?" Wilkommen to Richmond"... This is the time to structure that move.

Area Total SFD Listings # Vacant % Vacant
Richmond 907 226 24.92%
Ladner 81 19 23.46%
Vancouver W 864 192 22.22%
Whistler 183 40 21.86%
Burnaby E 65 14 21.54%
N Vancouver 352 73 20.74%
Port Coquitlam 119 23 19.33%
Vancouver E 501 96 19.16%
Burnaby S 237 45 18.99%
Burnaby N 168 29 17.26%
Coquitlam 420 64 15.24%
W Vancouver 452 67 14.82%
Maple Ridge 541 74 13.68%
New Westminster 92 12 13.04%
Port Moody 120 14 11.67%
Squamish 176 18 10.23%
Tsawwassen 123 10 8.13%
Pitt Meadows 56 4 7.14%
Total 5457 1020
Average 16.86%