Monday, July 8, 2013
Interest Rates Poised to Rise
Chilliwack strikes a balance, but for how long?
Released by Steve Lerigny, Chilliwack and District Real Estate Board/Submitted photo of Jesse Hildebrandt
hilliwack and area is benefitting from a stronger national economy, as home sales heading into the start of summer took a noticeable jump.
Sales completed in June reached 215, compared to 191 in June of last year.
“Chilliwack and area has always held its own through some volatile times on the North American real estate market, but our numbers are up not only for the month but overall, based on seasonally adjusted averages,” said Jesse Hildebrandt, President of the Chilliwack and District Real Estate Board (CADREB).
In fact, most BC markets are looking better, he observed, but it does not come without some changes in the banking industry.
“For some time, we have enjoyed record low interest rates, and in order to create a stronger economy, there is now upward pressure on mortgage rates,” he explained.
“I have said it before, but it bears repeating at this time - if you are contemplating a home purchase in the next few months, it is imperative that you pre-qualify for a mortgage and that you get the best possible quote on an interest rate and lock it in”.
Of the 215 sales last month, the highest number of sales (32) were in the $300,000 - $349,999 range, followed by 22 sales in the $350,000 - $399,999 range. The total dollar value was significantly higher than last June’s, from $58.9 million to just over $67 million.
With sales on an upward trend, more inventory is needed to create a competitive market. Mistakenly, owners hesitate to list their homes in the summer months, thinking that sales are too slow.
“With the exception perhaps of the Christmas season, for a variety of reasons, year-round there are people looking for homes,” added Mr. Hildebrandt. “It is important that there is a wide selection of inventory at various price points. This creates a balanced supply and demand situation, which is beneficial to both the buyer and seller”.
Editor's Note: See the monthly sales highlights compiled from CADREB stats on the right side Voice's main page.
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