Richmond BC Detached Home Market Update: 2025 Year-End Review 

Executive Summary: The 2025 Market Shift

For those seeking a quick overview of the Richmond detached real estate market as we exit 2025, the key statistics are as follows:

• Market Type: Buyer’s Market

• Sales-to-Actives Ratio: 8.3% (November 2025)

• Active Inventory: 635 units (up significantly from January 2024)

• HPI Benchmark Price: $2,047,600

• Trend: Inventory has reached a two-year high while prices in the luxury segment are softening.

Current Market Conditions

The data from January 2024 through November 2025 indicates a clear shift in leverage from sellers to buyers.

Inventory Growth Inventory levels have increased steadily throughout the year. We began 2024 with inventory in the low 400s. By November 2025, active listings reached 635. This increase provides prospective buyers with significantly more options than were available 24 months ago.

Sales-to-Actives Ratio This ratio is the primary indicator of market velocity. In early 2024, the detached market was balanced (approximately 16%). As of November 2025, the ratio has compressed to 8.3%. Typically, a ratio below 12% signals a Buyer’s Market, suggesting downward pressure on pricing if inventory fails to absorb.

Expert Insight: Why is the Median Price Lower than the HPI?

A common question in today’s market is regarding the divergence between the Home Price Index (HPI) and the Median Sales Price. In November 2025, the HPI was $2,047,600 while the Median Sales Price was significantly lower at $1,769,000.

It is important to understand the difference between these two metrics to interpret market health accurately.

What is the difference?

• Home Price Index (HPI): This metric tracks the value of a "benchmark" or typical home in Richmond, adjusting for variations in the types of homes sold. It is the most accurate measure of pure value change over time.

• Median Sales Price: This is the middle number in a list of all sales for the month. It is highly sensitive to what is selling, rather than just value changes.

Interpretation of the Current Gap The sharp drop in the Median Sales Price does not indicate that all property values have plummeted by $300,000. Instead, it indicates a change in the sales mix.

The current gap suggests that transaction volume is concentrated in lower-priced, entry-level detached homes. High-end luxury properties are not selling at the same volume, which skews the median price downward. While the benchmark value (HPI) has softened, it remains more stable than the median price suggests.

Frequently Asked Questions (FAQ)

Is 2026 a good time to buy a house in Richmond? With a sales-to-actives ratio of 8.3% and inventory at two-year highs, market conditions currently favor buyers. There is less competition for listings and more room for negotiation compared to previous years.

What is happening to luxury home prices in Richmond? The divergence between the HPI and Median Price suggests the luxury segment is moving slower than the entry-level market. Sellers of higher-end properties should anticipate longer days on market (currently averaging 39 days).

Has the Richmond housing market crashed? No. While the median price shows volatility, the Home Price Index (HPI) shows a gradual softening rather than a crash. The HPI remains above $2 million, indicating that benchmark values are holding relatively steady despite lower transaction volumes.