In the last six months, 24 condos in one city centre strata complex — about 10 per cent — were listed for sale.
There are currently 14 listings at the strata complex at Gilbert Road and Elmbridge Way that were completed last year, and 10 other units have sold in the last six months.
This is “a lot” of listings, explained Richmond realtor Chris Dinnell, as normally, such a building would have a just handful.
Dinnell, with the Dinnell Real Estate Group, said he’s seen the strata documents and there’s nothing wrong with the building — rather, he thinks the high number of listings is a result of high interest rates and new short-term rental rules.
Many of the units were probably bought by investors, he explained, and now with interest rates five per cent higher than 16 months ago, some owners might not be able to keep up with their mortgage payments.
Dinnell is seeing more listings on the market in newly built buildings, and more “assignments” taking place, that is, people who have bought a pre-sale condo are selling the contract.
Steveston continues to be a tight market
Steveston South — also known as London Landing — is another story with only 10 listings on the market.
And nothing is currently listed under $950,000.
Listings in this area show quick turnarounds, especially in areas like Andrews Road which has a lot of “entry-level” homes at more reasonable prices.
“Those are getting scooped up right away,” Dinnell said.
This might seem counter-intuitive as city centre is close to the Canada Line and other services.
But Dinnell thinks it’s because people are looking for the lifestyle that the tight-knit community of Steveston offers.
The current real estate trend appears to be “cautious,” Dinnell told the Richmond News.
“People are sitting on the sidelines being cautious,” he said.
He notes 25 per cent of buyers are waiting for prices to come down while 25 per cent of buyers are waiting for interest rates to come down.
But he would argue the current real estate market is a buyer’s market.
“I personally feel if you’re a buyer, you should be out there looking for deals because there are deals to be had,” he added.
New short-term rental rules affect market
The provincial government recently changed the rules around short-term rentals in order to get more housing back into the long-term rental market.
Now, short-term rentals are only allowed in the principal home of the owner.
Not only are the new rules putting pressure on owners who relied on this income to pay their mortgages, Dinnell doesn’t think the new rules are going to alleviate high rents.
On the contrary, owners who are used to getting high yields from short-term rentals are going to charge “top dollar” in rent to cover their mortgages, he said.
He’s worried the new short-term rental rules are going to make it worse for renters.
“Government is squeezing them — they have to (charge high rents),” he added. “So, I don’t think it’s going to fix the issue.”
Got an opinion on this story or any others in Richmond? Email your thoughts or story tips to [email protected].
