Richmond Real Estate Market Report

Blog by Arnold Shuchat | August 30th, 2014

Expensive Richmond Homes:  The Real Story

It's time the real story was told without all the speculation and obfuscation.  When I look at the real estate market in Richmond for single family homes over $2 Mill, this is what I see for the most part. 

1. Most of the new homes for sale, and by "new" I mean those that were built subsequent to 2011 had their land purchased at the previous market highs and have been languishing on the market for many months.  The question is really whether the owners who either invested cash or line of credit money prefer to carry a home at a 3.5% opportunity cost "vacant" for about $2,916/mo/$1,000,000 or realize a loss on their investment. 

2. A list of these homes is produced below and contains the list of the ones sold in the last 30 days.  Of the 154 homes listed during this period, only 8 have sold, or 5.1%.  Anybody would call that a buyer's market.  For the solds, I cannot produce the list of addresses with the corresponding prices due to reasons of confidentiality.  But I can show the times on market and the percentage of original price as well as the area/neighbourhood in question.  Here are some key numbers re. these sales:

Cumulative # of 
Highest # Months Realtors
Street Area "Hope" Price Sold Price Discount  on Market SqFt Yr Blt Age Used
WESTMINSTER HY Riverdale 2,788,000 2,133,000 0.23 51 5455 2010 4 7
DELAWARE RD Woodwards 2,980,000 2,150,000 0.28 13 4670 2013 1 2
STEVESTON HY E. Richmond 2,388,000 2,150,000 0.10 3 8064 1990 24 1
MAPLE PL Woodwards 2,990,000 2,210,000 0.26 40 3631 2011 3 7
GRANVILLE AV Riverdale 2,399,000 2,280,000 0.05 2 5005 1993 21 1
MARIPOSA CT Riverdale 2,899,000 2,280,000 0.21 12 3911 2013 1 1
BAMBERTON DR Broadmoor 2,680,000 2,498,000 0.07 2 3722 2013 1 1
SEMLIN DR Terra Nova 3,100,000 2,762,000 0.11 18 3446 2014 0 1
Averages 0.16 17

Without going into a detailed history of the units that didn't sell, it is safe for me to say that those statistics are worse.  The properties are owned by those who would prefer to change Realtors as opposed to realize market value for the properties.  Maybe it is true, that "they don't have to sell", or "we only need one".... but when the bite isn't on, no bait doesn't help either.

Want to have some fun shopping? .....