Though prognosticators are saying a drop in sales doesn’t necessarily mean a drop in values, the average price of local real estate did fall in May.
The latest numbers from the Chilliwack and District Real Estate Board (CADREB) show a 3.35 per cent dip in single-family home values, from an average of $1,065,706 in April to an average of $1,030,011 in May.
Single-family homes hit an all-time high of $1,118,254 in February.
The number of single-family homes sold fell significantly in May, with 105 finding buyers compared to 154 in April, 179 in March and 215 in February.
“Unit sales are down, but if you take into account that 2021 was still part of our highest sales records of all time, sales are still way up in comparison to 2020,” said CADREB president Daryl Moniz, noting that overall residential sales are still ahead for the year.
Moniz is correct about 2022 versus 2020. Two years ago at this time, 88 single-family homes sold for an average value of $647,772.
CADREB referred to the current situation as a ‘normalizing market,’ fueled primarily by mortgage rate changes.
According to a recent report by the BC Real Estate Association (BCREA), Chilliwack-and-area buyers are the most sensitive to interest rate changes in the Lower Mainland.
Condominium prices took the biggest hit last month, tumbling 13.08 per cent from an all-time high of $507,978 in April down to $441,555. That’s still third highest on record.
Townhouses dropped 5.17 per cent from $706,858 to $670,306.
On the whole, 218 residential listings sold in May for a combined $178,596,550 and an average price of $819,250.
The highest number (18) were homes in the $1 to 1.1 million range. Sixty homes went for over a million and four sold for over $2 million.
Another factor highlighted in the CADREB report is that listings are staying on the market longer. According to CADREB, the average days on market increased by 37 per cent to 22, compared to 2021 when homes were going almost as fast as they appeared. But in 2020 the average number of days on market was 47.
The number of listings has risen, giving buyers more opportunities and more time to buy. At the end of May, there were 1,154 listings on the local market, up substantially from the 707 listings at the same time last year.