Sales of Chilliwack real estate moved breezily through the summer with a solid record-breaking finish for August 2016.
Home sales in the area continued to be stellar, led by strong millennial migration, economic activity, and ongoing population growth.
But things might level off a tad in the coming weeks, according to some prognosticators.
“Home sales remain at almost unprecedented levels, but they are coming off the boil compared to earlier this year,” said Richard Admiraal, president of Chilliwack & District Real Estate Board. “A recent influx of new supply has provided some relief on the supply side and the market isn’t as tight as it was.”
Home sales totalled 380 units in August 2016, an increase of 30.6 per cent from August 2015, according to CADREB stats.
Sales of all types of properties numbered 400 units in August, up 31.1 per cent on a year-over-year basis.
“Even in the typically slower months of summer, there was strong sales activity locally, which can still be characterized as a seller’s market,” said Admiraal.
Fall is expected to be strong as well, with folks moving in from the west still a big factor in the local market.
“A lot of what drives our market is that migration from west to east,” he said. “The Vancouver real estate market has been slowing down, so our market will trend toward a bit of a balanced market,” Admiraal said.
There are also millennials who are looking to buy in the more affordable Chilliwack area, and that had a demonstrable impact. There may be a slight levelling off in price, but there should still be a fair amount of demand.
Sometimes after such a high ramp-up of pricing, things level off accordingly.
“In three weeks from now, we’ll know more,” he said.
Things will either cool off, or take off.
Evan a more balanced market is a still a good market.
“It is the best type of market. Sellers can still see prices go up, but there’s a little more supply. Demand is likely to continue, and more supply means a better chance of keeping up with the demand,” said Admiraal.
The dollar value of home sales for last month was $150.8 million, a whopping increase of 54 per cent from August 2015, when sales totalled $98 million. It was the highest August on record, according to MLS system stats of the Chilliwack and District Real Estate Board.
The total value of all properties sold in August was $174.4 million, rising 72 per cent on a year-over-year basis.
Some properties may have been sitting on the market with sellers reaching for the highest prices.
Others may go to multiple listings.
“While some have been reaching for highest prices, there’s a chance some of these prices may be a bit high, and might see correction,” he predicted.
The properties getting multiple offers are “the best priced homes in the best locations,” he noted.
Prices in August recorded a year-over-year gain of less than 20 per cent for the first time since February but remain in double-digit territory.
“So the big picture for sales and prices would be that they’re still very strong, just not as strong as a few months ago.”
The average price of homes sold in August 2016 was $396,958, up 17.9 per cent from last August. The year-to-date average price was $394,246, up 19.9 per cent from the first eight months of last year.
New residential listings numbered 457 units in August, rising 29.1 per cent from a year earlier.
There were 938 active residential listings on the Board’s MLS® System at the end of August 2016, down 28.9 per cent from August 2015 and the lowest level for this month in a decade. Demand was high in the single family home sector, with 207 sales.
Of the homes that sold last month, the most popular by far were homes in the $400,000-$499,999 range (96 sales), followed by 52 sales in the $350,000-$399,999 range. There were five over the $1 million dollar mark.