Richmond's Seafair home prices taking a beating
Below is an update on the selling prices for Richmond Seafair homes that showed a big decline in their property values. A study done at the end of November 2008 showed that home values in Richmond Seafair neighborhood made significant gains from 2001 to 2008. When the market corrected in April 2008, home prices in Richmond's Seafair neighborhood took a beating in the second half of 2008.
As of April 22, 2009 the following sales data showed a marked decline in Richmond Seafair home prices. The table below showed that more than $126,000 was wiped off from the average selling price for these older Seafair homes.
| Year | No. Sales
| Price ('000) | Av. Price | % Var. |
| 2005 | 43 | $363 - 480 | $421,000 | - |
| 2006 | 34 | $459 - 570 | $514,000 | +22% |
| 2007 | 31 | $446 - 618 | $532,000 | +3.5% |
| 2008 | 28 | $510 - 765 | $637,000 | +19.7% |
| 22/3/2009 | 11 | $448 - 585 | $511,000 | -20% |
Richmond Seafair home prices versus their city values
The average selling price for the 11 homes was $511,000 which was around 3.5% below the average listing price of $524,000. When the average selling price of these 11 homes was compared to their average city value, these homes were found to be selling at 11% lower than the city value.
The question in everyone's mind is will home prices stabalize at the current level, or will it slide further to the price level of 2005?
The lower interest rates do appear to be having an effect on Richmond's housing market. Prices appear to be stabalized at current level for now. Inventory is currently at a stable level, and not rising as I expected. Whether home prices will stabalize at current level will depend on the demand for homes being maintained at above 300 homes a month, and inventory kept at below 1,700 level.
Return to Homepage.