Chilliwack – In this months real estate numbers, CADREB, the Chilliwack and District Real Estate Board states that if you are pre-approved for a mortgage and currently shopping for a home, the ball has shifted. What was only a few short months ago a seller’s dream has transitioned into a balanced market.
Last month, a total of 289 residential sales were completed compared to 482 in June one year ago, representing a 35 per cent decrease for year-to-date. The reason? Stricter mortgage rules introduced a few months ago, has made is more difficult to realize the dream home. This has had an effect on the migration of Buyer’s from the west as well.
“The revised rules, which ensure that buyers not only qualify for the amount asked for, but would be able to withstand an interest rate hike, is having a dramatic effect on buyers,” said Lori Maier, Chilliwack and District Real Estate Board (CADREB) President.
“Combined with a mortgage rate increase expected later this month and a typical slowdown of traffic in the summer months, it has quickly returned to a normalized market”.
Despite a marked decrease in unit sales, the median prices continue to rise, added the CADREB President.
“If you are prepared to follow the advice of your REALTOR® about where your home should be priced and are willing to wait a little longer in some cases, there are still buyers out there”.
Of the 289 sales last month (June), the highest number of sold stickers (51) were homes in the $400,000-$499,999 range, followed by 49 sales in the $500,000-$599,999 range. There were 8 sales over the $1 million mark.
The number of active listings at 1,347 is creating a much broader choice of homes in various price categories.
The local Board strongly advises homeowners, more than ever, to seek pre-approval from their financial institution prior to home shopping.