The average selling price of the 280 homes sold in the Chilliwack and district area last month was $534,684, virtually unchanged from a year ago. (Greg Laychak/Black Press file)

The average selling price of the 280 homes sold in the Chilliwack and district area last month was $534,684, virtually unchanged from a year ago. (Greg Laychak/Black Press file)

Mortgage stress test continues to hinder Chilliwack real estate sales

Yet average selling price over $530,000 virtually unchanged year over year

Sales are down, listings are up, but the macroeconomic principle of supply and demand just isn’t having an effect on prices of homes in the Chilliwack and District Real Estate Board (CADREB) area.

April is typically a hot month for sales, but with just 280 sales last month, that’s down from 361 in April 2018.

The average selling price of $534,684 is close to the average of $533,020 for the same month last year.

And while 280 sounds low, that’s compared to the three-year selling boom from 2016 to 2018 that saw an average of 421 sales in April.

In 2015 there were 281 sales, in 2014 just 240 and in 2013 and 2012, 193 and 187 respectively.

As to the “why” sales continue to slump in 2019, CADREB blames the federal government’s “stress test,” which is living up to its name. The board estimates as much as 20 per cent of previously potential buyers are being shut out of the housing market because of the new mortgage qualification rules.

• READ MORE: B.C. real estate board urges feds to revisit mortgage stress test

“Despite interest rates continuing to be historically low, the stress test, which was imposed in the new year has prevented many from achieving their dream of home ownership,” said Kyle Nason, CADREB president in a press release. “It’s proving to be frustrating to buyers and sellers.”

Nason said that the local board has now met with both the provincial and federal governments, asking for help for consumers to help offset the negative effects of the stress test. The test not only takes into account what a person can qualify for now in a mortgage payment, but what could be withstood in the event of a rate hike (currently based on 5.9 per cent).

While sales are down, listings are up 55 per cent from 989 in April 2018. The slowing sales has not put pressure on prices, however, with average sales prices up 3.4 per cent across the board. Chilliwack is down 3.15 per cent, but Sardis is up 5.1 per cent. The best bargains are in Hope, where the median price has decreased by 15.6 per cent.

Part of the reason why the average selling price is not going down with lagging sales is because what is being purchased is at the higher end. The highest number of sales last month (35) were in the $550,000 to $599,999 range followed by 26 sales in the $600,000 to $649,999 range.

Of the 280 sales, 140 were single family homes for an average price of $643,644. The 64 townhouses sold for an average price of $446,610. And the average of the 13 apartments sold was $259,204.

There were 13 sales over the $1 million mark, all houses with acreages for an average price of $1.24 million.

• READ MORE: Chilliwack real estates sales in March still slumping as prices stay steady


@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

The Chilliwack Chiefs played their 2020-21 BCHL season finale Sunday against Prince George at the Chilliwack Coliseum. The junior A team will open 2021-22 with an American Hockey League team calling Abbotsford home. (Darren Francis photo)
Chilliwack Chiefs viewing Abbotsford AHL arrival as an opportunity

The junior A BCHL club hopes to strike up a friendly relationship with the unnamed Canucks affiliate

Chilliwack’s Allie Thiessen enjoyed a productive season for the Central Washington Wildcats women’s softball squad, and earned GNAC All-Academic status. (Central Washington U graphic)
Chilliwack’s Allie Thiessen earns All-Academic status in Great Northwest Athletic Conference

The women’s softball star at Central Washington University had one of the highest GPAs on the list

Trina Hunt’s remains were found in the Hope area on March 29. Her family is asking the public to think back to the weekend prior to when she went missing. (Photo courtesy of IHIT.)
Trina Hunt’s family appeals to killer to step forward after remains found in Hope

Cousins also ask Hope residents to think back to weekend Port Moody woman was in the area

Chilliwack real estate may finally be moving towards a buyers' market, according to the local real estate board. (Paul Henderson/ Chilliwack Progress file)
Chilliwack real estate sales forecast to see the highest increase in B.C. in 2021

BCREA second quarter forecast predicts 51.6% jump in sales this year, 20% rise in prices

Corey Neyrinck was sentenced on Jan. 19, 2018 to seven years in jail for sexually touching two young girls and creating child pornography. He was released on Dec. 4, 2018. As of May 11, 2021 he faced two counts of failing to comply with a prohibition order. (File)
Chilliwack man sentenced to 7 years for sexually touching underage girls back in custody

One-time school board candidate Corey Neyrinck charged with violating internet prohibitions

Still from a video of a townhouse fire on South Sumas at Vedder Road in Chilliwack on May 9, 2021 before Chilliwack Fire Depatment crew arrived. (Submitted)
VIDEO: Grass fire leads to townhouse blaze in Sardis on Mother’s Day

Chilliwack Fire Department warns that matches and lighters can have ‘devastating’ effects

Keith MacIntyre - BC Libertarian
Penticton’s Keith MacIntyre new leader of the B.C. Libertarian Party

The Penticton businessman was voted in by members of the party on May 8

RCMP are searching for Philip Toner, who is a 'person of interest' in the investigation of a suspicious death in Kootenay National Park last week. Photo courtesy BC RCMP.
Man sought in suspicious Kootenay death found in Lake Country

Philip Toner is a person of interest in the death of Brenda Ware

Vernon North Okanagan RCMP reported to 287 mental health calls between Jan. 1, 2021, and May 1. (Black Press files)
‘It’s not the police’s responsibility to deal with mental health calls’: Vernon RCMP

RCMP remind public to take care of mental health and well-being, while better solutions are sought

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Thompson Rivers University campus is in Kamloops, B.C. (KTW file photo)
Thompson Rivers the 1st B.C. university to supply free menstrual products

The university will offer the products this September

Fraser Health is using ‘targeted’ vaccination clinics in high-risk areas of the Lower Mainland. (Fraser Health photo)
B.C.’s COVID-19 decrease continues, 515 new cases Tuesday

426 seriously ill people in hospital, up from 415 Monday

The site of Sunfest, Laketown Ranch, will be open for camping this summer. (Citizen file)
Sunfest country music bash won’t be shining on B.C. in 2021

Annual Vancouver Island Festival cancelled due to COVID-19, along with Laketown Shakedown

Tla-o-qui-aht First Nation elected chief councillor Moses Martin, who was also Chantel Moore’s grandfather, speaks to media in Port Alberni on Aug. 16, 2020, during a visit from NDP leader Jagmeet Singh following the police shooting of Chantel Moore. (Elena Rardon photo)
Mother of 2 shot by police in critical condition, says B.C. First Nation chief

Community ‘devastated’ by third member of 1,150-person Vancouver Island nation shot in less than a year

Most Read