Chilliwack – The slumping oil business, the mortgage stress test, and extra taxes imposed on foreign buyers have combined to produce yet another sluggish month for homes sales in Chilliwack and area.
Last month, 177 sales were recorded, compared to 284 sales in November of last year.
“We are seeing very little migration from the west, into our area compared to the last two years,” said Chilliwack and District Real Estate Board (CADREB) President-Elect, Kyle Nason.
“The stress test imposed by the federal government almost a year ago continues to play the biggest role,” he added. Not only does it impact how much potential home buyers can afford now, but also if they can withstand a rate hike.
Despite slower sales however, home prices remain strong.
“While we have seen some moderate adjustments based on supply and demand, prices have settled into a comfortable level,” said Mr. Nason. “There are still buyers out there, but sellers need to ensure that their home is listed correctly for market conditions, and be prepared to wait a little longer”.
The sales to active ratio is at 16%, which indicates a balanced housing market for Chilliwack and market. The Board expects to see a modest increase in sales in early 2019, and is encouraged by the number of local listings on the market. At the end of November, there were 1272 listings on the market, compared to just 766 homes on the market at the same time last year.
Of the 177 homes that sold last month, the highest number (22) were homes in the $400,000-$449,999 range, followed by 21 sales in the $500,000-$549,999 range. There were 8 sales over the $1 million mark, including one over $2 million.