Sentiment Change? – Richmond Retreat

“Richmond Detached (homes) Inventory
30 Sep 2008 = 1012
20 Apr 2012 = 1021
Richmond at record high and its only April!”

– Inventory at vancouvercondo.info 20 Apr 2012 2:02pm

“There are more and more people over at the Chinese [internet] forums reporting price drops in their neighborhoods (be it Richmond condos or Coquitlam SFHs). More people are voicing their skepticism that Vancouver RE market will continue to go up. Many already accept the view that Van RE price will decline at least a couple % this year.
People are noticing the glut of thousands of upcoming Richmond condo units, and are advising against buying at this time. A few people are saying their close/trustworthy Chinese Realtor friends are saying the RE market isn’t looking good; however the other Realtors (whom they’re not close to) are still trying to paint a rosy picture.
Sentiment is changing, even among the HAM.
They say housing is the most emotional of all assets.
Perhaps declining investor sentiment alone will bring on the downturn, even before hard credit events, massive job losses, or CMHC/OSFI rules kick in.”

– VMD at vancouvercondo.info 20 Apr 2012 2:02pm

11 responses to “Sentiment Change? – Richmond Retreat

  1. Richmond SFH inventory has been punishingly high for a while. A brief review: Richmond SFH was on fire the last half of 2010 and into the first few months of 2011 but then the Japanese tsunami hit and fears of liquefaction and floods sent owners for the hills and Richmond was left high and dry. That high MOI continued through most of 2011 and is now continuing into 2012 with no end in sight.

    It’s a bit of an odd situation, where normally I would say that properties being offered at that price point would take a while to sell anyways because they are “luxury”, basically “McMansions”. My prediction is that high MOI will stay around longer without significant price drops because owners and Realtors are under the impression that the brand of “luxury” property that has been built recently in Richmond takes longer to sell. It will be interesting to see how many of these properties have been funded and carried through Canadian lender financing, as going forward it’s going to be much more difficult to carry these properties without demonstrable income streams.

  2. I read the headline and could have sworn it said “sediment change”.

  3. Richmond will be ground zero for the massive correction. The amount of overbuilding in Richmond will add to the already saturated market. Richmond is not cheap anymore. Not long ago, nobody wanted to live in Richmond. Well if you don’t like Richmond, you now have to move to Surrey.

  4. Anyone have a link to the chinese internet forums?

  5. Basement Suite

    I gotta admit, those numbers are promising. Woohoooo! Gonna buy some popcorn for this show.

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