Chilliwack – The frenzied pace of housing sales experienced just a few short months ago has cooled, returning to a more balanced market.
The 287 home sales posted in September, while still 10 sales above the same month last year, indicates a return to a more typical market. It’s all part of the cyclical nature of real estate, according to the Chilliwack and District Real Estate (CADREB) President, Richard Admiraal.
“With the lack of housing affordability in the metropolitan areas, Chilliwack and area saw a surge of buyers heading east to our area, early in the Spring,” he explained. “This demand drove the prices up, and sellers were often in a position to entertain multiple offers.”
He added “Currently we are studying the effects of the Foreign Buyer 15% Property Purchase tax, and awaiting the impact of the new Federal Government Housing Plan”.
Under the plan, effective October 17, all insured homebuyers will have to qualify at the posted 5-year qualifying rate. This will significantly affect first-time buyers, forcing some to continue to rent in a rental market with inflated rates, and further hamper their success at saving for a down-payment.
It could be good news for investment buyers however, as they will have a larger market to utilize both from a purchase standpoint and from a larger rental pool.
The CADREB President feels confident that Chilliwack will withstand these changes.
“Chilliwack’s market is well positioned to weather these changes and will still attract all types of buyers. First-time home buyers who can’t afford other areas will look for Chilliwack’s affordable single family home option. Investors will buy here because prices are reasonable and rents are high.”
Of the 287 home sales last month, the highest number (58) were in the $400,000-$499,999 range, followed by 45 sales in the $350,000-$399,999 range. There were 19 sales over $700,000, including 3 over the $1 million mark.
The dollar value was significantly higher that last year however, totaling just under $115 million is sales, compared to $98.5 million in September of 2015.
The Board President added “A balanced market better enables transitional moves and sellers should once again consider subject to sale offers. They will need to ensure that their properties show well and win over a more limited number of buyers.
It’s important to remember that the local and Provincial economy is performing very well and there is significant migration to the Province.”
CADREB REALTORS and associated professionals in the Real Estate industry understand the cyclical nature of the real estate market and they are aware of the external forces that affect it. They watch the market closely and work hard to trade real estate assets day to day in the active Chilliwack and District real estate market.