Chilliwack – Stricter federal regulations imposed last month on qualifying for a mortgage has no doubt played a role in “normalizing” the local housing market.
For the first time in months, home sales dipped below the same month last year – posting 277 sales, compared to 288 sales in October of last year.
The regulation, designed to “stress test” the ability of a home buyer to withstand any future mortgage rate fluctuations, has likely contributed to the market stabilizing, according to Chilliwack and District Real Estate Board (CADREB) President, Richard Admiraal.
“We anticipated that it would affect first time buyers the hardest, as it has made it more difficult to qualify for a mortgage,” he explained. “However, time will tell if this is the case, or if potential buyers were holding back on buying to learn more about the new qualifications”.
Admiraal pointed out however, that home sales in October were on par with the previous month, indicating a stable market. The total value of residential sales at over $115.5 million, was up by more than $19 million over the same month a year ago, with significant increases shown in the single family and houses with acreage categories. Currently, townhouses are the quickest to sell with an average of 21.7 days on the market.
Of the 277 sales last month, the highest number sold (58) were in the $400,000-$499,999 range, followed by 45 sales in the $350,000 – $399,999 range. There were 16 sales over the $700,000 level, including three over $1 million.
Mortgage rates are still low, and with the market shifting from a sellers’ market to a buyer’s advantage, there is still time to close a deal on a new home by Christmas!
CADREB ANNUAL BLANKET DRIVE
With the temperatures dipping colder, it’s time for the annual CADREB Blanket Drive!
During the week of November 14-21, please bring your new or gently used clean winter clothing (sweaters. jackets, socks, hats) and blankets to your favourite real estate office anywhere in Chilliwack and area.
Each year, the local Board collects multitudes of items to distribute to community agencies in helping to keep residents warm over the fall and winter months.