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    JULY 2016 ANOTHER BANNER MONTH FOR CADREB.

    by Steve Lerigny | Aug 16, 2016
    Aug.4, 2016

    Time will tell whether the newly imposed 15% Property Transfer Tax on foreign buyers will affect Chilliwack and area, but in the meantime, home sales continue to outpace last year’s levels by a large margin.
    While not seeing multi-bids as witnessed a few short weeks ago, home sales reached 387 in July, at a time when sales typically slow down for the summer. This represents almost 100 more sales than July of last year, totaling an incredible $154.7 million in value.
    What’s in store for late summer and fall?  Last year the market did not see much of a seasonal slowdown, but this Summer could and the changes to the PTT means we could see a return to a more balanced market,  according to Richard Admiraal, President of the Chilliwack and District Real Estate Board (CADREB).
    “After such a significant ramping up of demand that likely peaked in the Spring, a normalization trend is expected and had already begun a few weeks before the provincial government’s interference in the Real Estate market”.
    CADREB feels that additional study was needed before the implementation of such a dramatic 15% tax was imposed on foreign buyers.
    “Two recent studies done by the BC government showed that the Greater Vancouver Regional District market was comprised of 5% foreign purchasers and then 10% foreign buyers. It was clear from this data that the GVRD market is primarily comprised of ‘home’ buyers, many of whom are Millennials getting into the market for the first time”.
    Mr. Admiraal added that while Chilliwack and area may see some foreign buyers become interested in this area to avoid the newly imposed transfer tax, this area continues to draw families who come to Chilliwack to live and raise their families, and seniors who want more affordable housing and good amenities.
    Of the 387 sales last month, the highest number (73) were in the $400,000-$499,999 price range, followed by 53 Home sales priced between $350,000-$399,999.
    At the end of July, there were only 937 active listings on the market, down almost 30% from the same time last year.  In order for the current market to transition from a seller's market to a more balanced market more listings will be needed with a slight reduction in buyer demand.  
    The 291 experienced REALTORS® of CADREB have proven to be very adaptive to changing market conditions and can be counted on by Chilliwack's property owners to be in the know about how the market is performing week to week.