Real estate sales in Chilliwack in 2019 are forecast to drop by 8.1 per cent but bounce back up to 2018 levels in 2020. (Black Press file)

Chilliwack lagging real estate sales mirrors provincial trend

Forecast for 2019 is a drop from 2018 but a bounce back predicted for 2020

Provincial real estate sales numbers trended lower in June with average sale prices also falling by four per cent.

And while sales in the Chilliwack and District Real Estate Board (CADREB) area similarly dropped in June continuing a trend, the average sale price isn’t falling, in fact increasing by 1.7 per cent year-over-year.

The average price of a home sold in B.C. in June was $687,584 down four per cent from $716,045 in June 2018.

In the CADREB area, which includes Agassiz and Hope and all parts in between, the average sale prices lat month was $538,147 up from $529,157 a year ago.

• READ MORE: Balanced market for Chilliwack real estate continues

• READ MORE: June sees drop in home sales, prices for real estate across B.C.: report

To compare, the average sale price in the Fraser Valley Real Estate Board was $741,786 last month, down 1.6 per cent from $753,729. In the Greater Vancouver Real Estate Board, the average sale price of $980,635 was down 8.2 per cent from $1.069 million.

“B.C. home sales moderated lower in June after a stronger showing in May,” said B.C. Real Estate Association (BCREA) chief economist Brendon Ogmundson. “While mortgage rates offered by lenders have moved below three per cent, a static qualifying rate has limited the impact of the lower cost of borrowing.”

Five months into the year and 1,279 units sold in the CAREB area down 25.7 per cent from the same period in 2018. That mirrors a provincial trend of 23.4 per cent decline in sales.

As part of its second quarter housing forecast, BCREA estimates 2,600 sales locally for 2019, which would be an 8.1 per cent decline over the 2,829 sales in 2018. The 2020 forecast is for a bump back up of 7.7 per cent to 2,800 sales.

That compares to a pvoincewide forecast of a sales decrease of 8.9 per cent in 2019 followed by an increase of 14.4 per cent for 2020.

The BCREA continues to blame the B20 mortgage stress test for the continued slowdown, pointing to the damage it’s had in the Lower Mainland’s three markets, which make up 60 per cent of housing demand in the province.

“Millennials may be temporarily stalled by the toughest mortgage qualifying rules in modern Canadian history, but they will form households in the rental and ownership markets eventually,” according to the BCREA forecast. “The only question is whether these tough mortgage qualification policies will backfire on policy makers by slowing the expansion of the housing stock and cause yet another round of rapid price inflation in the coming years


@PeeJayAitch
paul.henderson@theprogress.com

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

UFVRD RCMP issues missing person alert in Agassiz

89-year-old Carol Hepnar is missing, last beleived to be driving to Harrison Hot Springs

New waste system rolling out across Hope Feb. 10

Bins began arriving at homes around Hope this week

Rude awakening: 1.6-magnitude earthquake rouses residents from their sleep

The quake was detected 3 km east-northeast of Agassiz

UPDATE: Jack-knifed semi closes Coquihalla northbound

A red liquid is reportedly spilled down the side of Highway 5

VIDEO: Mass coronavirus quarantines seen in China won’t happen in Canada, authorities say

‘If a case comes here, and it is probably … it will still be business as normal’

Province’s oldest practising lawyer shares advice at her 100th birthday party

Firefighters bring Constance Isherwood a cake with 100 birthday candles

Vernon woman suing McDonald’s for spilled coffee

Woman seeking nearly $10K, says employee failed to put lid on properly

5 things you need to know to start using ridesharing in Metro Vancouver

From how to get started to where drivers can take you, heres all you need to know

Diners’ health tax not catching on in B.C., restaurant group says

Small businesses look for options to cover employer health tax

B.C. comic wins judgment after club owner slaps cellphone out of his hands

Incident happened last summer when Garrett Clark was performing in Abbotsford

Mayors call for ‘calmness’ as highway rockslide cuts Tofino, Ucluelet off from supplies

Ministry of transportation expects to open road for “essential travel only” from noon-8 p.m. Friday.

Owner surrenders dog suffering from days-old gunshot wound to B.C. SPCA

The dog was also found to be emaciated and suffering from a flea infestation

Most Read