Richmond Real Estate Market Report

Blog by Arnold Shuchat | March 26th, 2013

The Seller's Delusion Index (SDI).  This is the term I am going to use as a measure for how wrong Sellers have been. For starters I am going to use only the simple numbers available to me from the Real Estate Board to make a point.  Realtors may take listings that are over-priced.  But generally that doesn't do them any good unless they can get their selling clients to come to terms with the realities of the market.  So how well are the sellers doing?

In an ideal world, when a property would be listed, it would sell, no matter how unattractive it would be to buyers.  There should always be a price which makes us move on a property right? Welll check out the table below.  It speaks for itself and is in some way a measure of Seller Delusion!  It measures the ratio between [# of terminated listings in a period + # of expired listings in a period] divided by the number of sales in a period.  The lower the ratio, the more efficient and functional the market is.  The higher the number, the more out to lunch the sellers expectations are and the more time Realtors are wasting on improperly priced listings.  Since the customer is always right, we will never blame buyers for doing whatever they want with their money!  The table below is just for Richmond.  I will get to the rest of the Lower Mainland in the next day or so. The data used to compile them represents the last 30 days from today's date in each of the years.

Richmond-Single Family Dwellings
Listings: 2013 2012 2011
# of Sales 58 113 216
# of Expireds 67 63 20
# of Terminated 38 89 53
Ratio of Expireds
& terminateds to
Sales: 1.81 1.34 0.338
Richmond-Attached Properties
# of Sales 114 204 355
# of Expireds 63 63 30
# of Terminated 38 73 68
Ratio of Expireds
& terminateds to
Sales: 0.886 0.667 0.276