Saturday, February 5, 2016
Real Estate News
The Perfect Storm
Home owners sit tight, buyers exceed inventory, prices squeezed higher
Steve Lerigny, CADREB
hile happily you won’t encounter tear-down homes for $2.4 million in the Chilliwack area, a narrow supply of homes for sale locally has predictably driven prices up.
Statistics compiled by the Chilliwack and District Real Estate Board (CADREB) show the average January to January comparable median price of a single family home in Chilliwack is up 10.4% in Chilliwack, 20.9% in Sardis, and 34.3% in Hope. Townhomes and apartments are also up in all areas.
“There are many factors that affect pricing,” said out-going CADREB President Travis Heppner. “A stable economy and interest rates play a role, but the biggest factor by far is supply and demand. We are continuing to experience low inventory, which pushes the prices up.”
Inventory last month dipped to 926 homes. Typically, at this time of year there are at least 1,300 homes on the market.
Sales continue at a strong pace – 178 homes sold in January, compared to 134 in the same month last year. Of those, 101 were single family homes, 47 townhomes, 21 apartments, 6 homes with acreage and 3 other. Total dollar value of all sales was just over $55.6 million.
The most popular price range posting 32 sales was $300,000 - $349,999, followed by 22 sales in the $400,000 - $499-999 range.
“We remain a bit puzzled about the low inventory of homes on the local market,” added Mr. Heppner. “While interest rates have nudged up a bit, they remain historically low, making it a perfect environment for buying a first home, moving up or even building your dream home.
Our REALTORS® have clients wanting to buy, but in some areas the numbers of homes for sale is so restricted that it is difficult to show them anything”.
If you are considering a move in this ideal housing climate, contact any of the 284 licensed professional REALTORS® of CADREB for an assessment of your property, or a consultation on your specific housing needs.
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