Image: M. Vanden Bosch / PML / Sales of Chilliwack homes fell over 50 percent in August 2022 compared to August 2021, as mortgage rate hikes are contributing to a slowdown in sales and an uptick in housing inventory.

By Mike Vanden Bosch

Real estate

Chilliwack real estate sales slow in August as housing inventory remains high due to mortgage rate hikes

Sep 8, 2022 | 6:00 AM

CHILLIWACK — Long before yesterday’s interest rate hike of 75 basis points, higher mortgage interest rates were already applying downward pressure on the sales of homes, townhouses, and apartments.

According to a press release from the Chilliwack and District Real Estate Board on Wednesday (Sept. 7), home sales in Chilliwack and the surrounding area, including Agassiz, Cultus Lake and Hope, are trending well below expected levels for this time of year, as affordability has been decimated by the steep nature of recent rate increases in recent months.

“With [yesterday’s] announcement of another rate hike by the Bank of Canada, it could be into the beginning of next year when the housing market start has finally absorbed the impact of higher rates and shows signs of bottoming out,” said Daryl Moniz, president of the Chilliwack and District Real Estate Board.

Image: Supplied by CADREB / CADREB President Daryl Moniz.

Sales of homes, homes with acreage, apartments, and townhouses in August 2022 dropped to only 147 units, a decrease of 57.1 per cent from August 2021. Home sales were 44.6 per cent below the five-year average and 46.6 per cent below the 10-year average for the month of August.

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If there’s a silver lining to the rate hike to 3.25 per cent, there’s plenty of housing inventory to choose from.

“On the supply side we’re still seeing a very healthy influx of new listings. As a result of lower demand, overall inventories are well up from rock bottom levels since the end of 2021 to more normal figures, which is good news for potential buyers who have been waiting on the sidelines for an opportunity to return to the market,” Moniz said. “We have had an indication of this over the past couple of weeks as there seems to be a little bit of activity by buyers.”

The average price of homes sold in August 2022 was $748,227, an increase of 5.1% from August 2021, CADREB said.

The number of new listings saw a gain of 12.8% from August 2021. There were 404 new residential listings in August 2022.

The Chilliwack and District Real Estate Board is an association of 365 realtors that provides services to, and sets standards for, members. The Chilliwack and District Real Estate Board serves Chilliwack, Agassiz, Hope, Boston Bar and Harrison.

by Mike Vanden Bosch

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Chilliwack real estate sales slow in August as housing inventory remains high due to mortgage rate hikes

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