Richmond realtor, Ken Pestano joined us in the studio to share some insight on his outlook for 2020 and why the latter part of 2019 was such a restrictred and slow market.
1. What are your forecasts for the next 6 months, 12 months and 5 years in your area?
In Richmond, next 6 months, Inventory will rise and sales will remain steady. Prices will remain the same with a slight increase for desirable, unique homes. The hottest properties would condos, prices ranging from 250K-450K.
In 12 months, I believe sales will double, as prices will steadily increase if interest rates remain relatively low. Inventory will slightly be low but higher than the prevour year.
5 years in Richmond. With the growing population, new buyers coming out and immigrants (approx: 30,000 every year to the Greater Vancouver), I believe by 2025 -2026, prices and sales will increase close to 5% or more.
2. What do you think will be the best investment for home buyers within the following segments- townhomes, homes, condos, apartments
Rentals, Rentals, Rentals. Condos with rental allowed or townhouses and detached townhouses with a separate suite.
3. What developments are happening in your area that are important for the long term potential
With approximately 46 new home developments coming in the next three years. Richmond is not in a recession, there is more concern of supply in real estate. There is a demand for more properties in Richmond.
New Skytrain Station
The Capstan Station will be built in the area of No. 3 Road and Capstan Way in Richmond, between the existing Bridgeport and Aberdeen stations. The city sees the area as a high priority for transit infrastructure as over 6,000 residential units are being built in and around the Capstan Village area. More opportunities for new businesses and investors to buy live-in or rental cash flow properties.
Airport YVR Growth
YVR forecasted growth and ensure the airport’s long-term financial health, Sept 2019, a new Airport improvement fee (AIF) has been approved. These expansion plans for Canada’s second largest airport are currently significantly larger than those of any other Canadian airport, even YYZ. (Toronto Pearson). In turn, creates more jobs/opportunities. Plus, potentially more re-location residents to Richmond and the Greater Vancouver area.
4. What is the biggest negative or worry for your area with regards to investment vulnerability?
Risk of construction developer quitting projects is in the news today. Back in 2015, Condos cost $500 per sq ft. Now, with building costs climbing, the same condos are asking $800 per sq ft. This has crushed a number of buyers’ dream of buying unit due unaffordability.
Post Pre-Sales selling:
With 46 new home developments on the horizon, re-selling completed units might be tricky. The appraisal/market value might be affected from the time to was purchased to completion (approx. 2years-4years).