Richmond Real Estate Report-Single Family Houses


Blog by Arnold Shuchat | January 10th, 2017


In the last 30 days as of 12:15 today, 44 SFDs have been sold. In order to get an idea as to what is really happening in our market, I searched through the history of each transaction.  This is what I discovered.  Out of the 44 sales, 15 of the properties had been purchased since 2014.  I wanted to get a sense as to whether recent buyers were starting to panic, and bail out of the market.  Of the 15 properties sold, just about one-half, or 7 properties were purchased during 2016.  Of those 7 sales, the cumulative profit before property transfer tax purchases and real estate commissions for all 7 of them was $96,000. It is obvious that most of the buyers from the 2016 year lost money on their venture.  It also seems apparent that with half of all recent sales being "recent" buyers, that there may well be a propensity for many of the transactions which took place in 2016 to start to unwind by exiting the market.  That coupled with a likelihood that there will be a likely reduction in speculative buying which may have accounted for between 20-30% of the market, should put a damper on the growth rate if any on the prices of single family residential housing.

The next interesting batch of sales will be those purchased between July 2016 for demolition and speculative house building, which finished product should start to hit the market in the first quarter of this year.  Will those builders make money on their projects, or will they just end up having bought themselves a job? Stay posted.

Year bought 2014 2015 2016 Sale $ (Loss)
10420 Dennis Cr 1,392,000 1,265,000 -127,000
3360 Capella Pl 840,200 1,270,000 429,800
4331 Francis Rd. 1,300,000 1,350,000 50,000
6191 Nanika Cr. 1,390,000 1,390,000 0
9611 Snowdon Ave. 1,570,000 1,670,000 100,000
7351 McAllan Rd. 1,810,000 1,750,000 -60,000
3597 Garry St. 955,000 1,761,904 806,904 new house
8480 Railway 1,675,000 1,910,000 235,000
3260 Francis Rd 2,280,000 2,178,000 -102,000
6820 Woodwards Rd 1,665,000 2,250,000 585,000
7960 Goldstream Pl 1,898,000 2,488,000 590,000
7460 Afton Dr 2,200,000 3,260,000 1,060,000
5380 Lancing Rd. 3,828,571 3,988,000 159,429