Chilliwack’s red-hot housing market doesn’t figure to cool off in 2021.
The first quarter forecast from the B.C. Real Estate Association (BCREA) projects a 17.1 per cent increase over 2020, placing Chilliwack and District second in the entire province, behind only Greater Vancouver at 21.8 per cent.
The Chilliwack and District Real Estate Board (CADREB) area saw 25.5 per cent growth last year, with 3,505 units sold at an average price of $577,430.
The BCREA projects Chilliwack’s housing values to rise another 7.4 per cent to $620,000.
As the B.C. economy emerges from recession and COVID immunizations proceed, the BCREA anticipates a flood of consumer spending. Near record-low Bank of Canada interest rates are expected to remain in place while the national economy recovers, providing more incentive for home buyers.
“After an unprecedented and often surprising performance in 2020, the provincial housing market is setup for a very strong year in 2021,” according to BCREA chief economist Brendon Ogmundson. “A strong economic recovery and record-low mortgage rates will continue to drive strong demand this year.”
Low supply remains a huge factor in the real estate projections.
According to the BCREA, the rate of new listings recovered in the back half of 2020, but overall housing inventory in most markets remains near historic-low levels. With low supply and high demand, the new listings that do pop up have the potential to generate bidding wars and sell for higher prices than they otherwise might if home buyers had more options.