According to the monthly statistical report released by the Real Estate Board of Greater Vancouver (REBGV), the real estate market in Greater Vancouver remains stable in January 2011, with some neighbourhoods seeing slightly higher levels of buyer demand. Jake Moldowan, President of REBGV, says that the activity always differs from region to region, giving us cause to look closely upon each of the Greater Vancouver areas separately.
Richmond real estate market is currently one of the most attractive housing market in Greater Vancouver, with demand still surpassing supply. Over the course of 2010, Richmond’s Housing Price Index (HPI), which estimates the percentage change in price of a typical, constant-quality property over time, increased 22.6 per cent. The HPI for Richmond’s detached housing rose to the level of 306.4 points in January 2011, which means that the price of a detached property rocketed upward with a more than three-fold increase since the year 2001, when it was calculated at an averaged HPI of 100. In the span of five years, the index for Richmond’s detached houses jumped by 80.3 per cent. This is a huge gain compared to the Greater Vancouver residential average, which rose by only 37.4 per cent. Other types of residential housing in Richmond do not seem to climb as quickly, maintaining a slightly upward trend with minor fluctuations since the beginning of 2010.
Looking at the long-term trend line, detached houses in Richmond rose at the beginning of 2008 only to fall sharply with the rest of the real estate market at the end of that year. At the start of 2009, the prices started a smooth and rapid climb that stopped in April 2010. At this time, the HPI levelled off at roughly 270 points and entered a moderating period with significant oscillations. Beginning in fall 2010, the price of detached houses started to rise. The increase was slow at first, but in the middle of November they rocketed upward to eventually reach the record level of 306.4 HPI in January 2011.
Attached and apartment housing in Richmond has been following a similar trend since 2008, but without the smaller oscillations. Apartment housing hovered above the other housing categories by 25 HPI index points, until detached housing broke away from attached housing and the Greater Vancouver residential average trend line, with a huge acceleration, at the beginning of 2010.