The B.C. Real Estate Association (BCREA) expects Chilliwack and District (Yarrow to Lytton) real estate prices to fall sharply in 2023.
The BCREA released its third quarter forecast Tuesday (Nov. 8), looking ahead based on what’s happened the last nine months.
BCREA breaks down the numbers for 11 regions in B.C.
Chilliwack’s average Multiple Listing Service (MLS) price is projected to end 2022 at $766,500 before dropping to $719,100 in 2023. That’s a 6.2 per cent decrease. Only the Fraser Valley region is forecasted to have a steeper decline, dropping 7.8 per cent from $1,039,800 to $959,200.
“With continued high interest rates and what looks like a difficult 2023 ahead for the Canadian economy, we anticipate that market activity is going to fall below normal levels next year,” a BCREA news release said.
The BCREA also predicts Chilliwack unit sales will fall, though not by much. A four per cent dip is forecasted, from 2,500 in 2022 to 2,400 in 2023. In the current real estate market, that’s effectively holding steady and it represents the lowest projected drop among the 11 B.C. regions.
The Fraser Valley is looking at a 9.7 per cent decline from 15,500 to 14,000 unit sales.
“The factors that drove unprecedented housing market activity over the past two years, including record low mortgage rates, buyer preference for extra space and the ability to work remotely, are now unwinding,” said BCREA chief economist Brendon Ogmundson. “As a result, there has been a significant shift in the housing market, which we anticipate will continue through 2023.”
Regions included in the BCREA forecast are Victoria, Vancouver Island, Powell River/Sunshine Coast, Great Vancouver, Fraser Valley, Chilliwack and District, Okanagan, Kamloops and District, Kootenay, South Peace River and B.C. Northern.
The BCREA is the professional association for 25,000 realtors province wide.