March 3, 2019
Patience is definitely a virtue heading into the month of Spring, as home sales locally continue their sluggish pace. While up 37% from the month before, at 154 completed sales, this number is down 40% from February 2018, which saw 260 sales.
“There is no doubt that the federal government’s ‘stress test’ implemented a year ago has stalled the economy,” said Kyle Nason, the Chilliwack and District Real Estate Board’s (CADREB) newly installed President.
The stress test is particularly hard on first-time buyers, as not only do potential buyers need to qualify for a mortgage at existing rates, but they need to prove that they can withstand a potential interest rate hike. For sellers, patience is the key, said Mr. Nason.
“Homes may be staying on the market longer, but patient sellers will still be ok. More than ever, it’s important to work with your REALTOR® who is aware of market comps (comparable homes and sale prices), and listen to advice about pricing your home competitively”.
Of the 154 sales last month, the highest number sold (16) were in the $450,000-$499,999 range, followed by 15 sales in the $600,000-$649,999 range. There were three sales over the $1 million mark. Total value of sales in February was just under $79 million, compared to over $132 million in February of last year.
Further testament that home sellers are willing to wait – median single-family resale home prices are up slightly at 1.6%, $594,500 compared to $585,000. It’s a great time for pre-approved buyers to shop for a first or move-up home, with 1,191 active listings on the market, compared to only 693 at this time last year.
The CADREB President reminds Chilliwack homeowners that the new Speculation Tax affects our area, so be sure to register if you haven’t already done so.
A local REALTOR® for a decade currently with Remax Nyda Realty, Mr. Nason is also a proud volunteer firefighter with the City of Chilliwack, and former captain of the Chilliwack Chiefs. He and wife Karlie have two boys, with a third child on the way.
“As President, I look forward to working with boards across the province and BCREA with all matters that affect our members and REALTORS® in the province, as well as regulations that impact residents in our local communities”.
With better weather in sight and Spring Break, March is typically a month that sees improved sales. Even with the stress test, the Board remains cautiously optimistic about more “sold” stickers appearing.
If you are thinking of buying or selling, contact any of the 308 licensed REALTORS® OF CADREB. Their expertise will help guide you through any market conditions.