Overall Drop in Chilliwack Real Estate Sales
The level of Chilliwack homes sales has dropped significantly this November compared to the same period last year. Experts urge residents not to panic as last November’s sales were actually an all-time high. Here are the details:
By the Numbers: Homes Sales Are Down
The MLS System of the Chilliwack and District Real Estate Board reported a total of 177 units sold in November 2018. Compared to the same month a year before, this is a nearly 38% drop. Stepping back to look at the broader picture shows the number of sales at 10 transactions below the 10-year average for sales in November.
The total cost of all the homes which were transacted this November was about $95.5 million, which was another decline of more than 30% from the previous November. The total sales of all property types were just under 200 last month, down 36.3% compared to the same period last year.
The first eleven months of 2018 recorded 2,711 sold homes—which is a drop of more than 28% compared to the numbers for January-November 2017.
The News May Not Be as Bad as It Seems
Looking at nothing but the numbers might cause some to worry about the state of Chilliwack real estate, but those in the industry say that home sales are actually better than they were before the summer hit. According to the President of the Chilliwack & District Real Estate Board, Lori Maier:
“Home sales have gained some momentum since the summer, although they were still running a little below their 10-year average in November. The slowdown in sales this year along with a rebound in inventories that began in the spring has returned the market to a more balanced position compared to the sellers’ market of the last couple of years,” as cited on CREA.
Home Prices Rise as Inventory Stays Stagnant
In November 2018, the average sales price for a home in Chilliwack broke records at $539,600 and showed an 11.3% gain on the average in November 2017. Looking at year-to-date average sales prices shows similar growth, with an 11.7% increase to an average sales price of $518,214 for the first 11 months of the year.
| Period | Average Home Price in Chilliwack | Year-over-Year Price Change |
|---|---|---|
| November 2018 | $539,600 | +11.3% |
| January-November 2018 | $518,214 | +11.7% |
The number of listings stayed nearly the same: this November saw 291 new real estate listings compared to 290 in the previous November. However, the number of active listings was up more than 66% from November 2017, when it hit an all-time low. The total number of active real estate listings at the end of November was 1,272, just slightly above the long-term average for that month.
Shift towards a More Balanced Market
In November of last year, the months of inventory (the number of months it would take to sell the current inventory at current sales pace) was at a mere 2.7 months. Note that between zero and four months of inventory is generally considered a seller’s market.
This November, on the other hand, had 7.2 months of inventory. Between five and seven months is accepted by real estate professionals as a sign that it is a balanced market. The slightly higher number indicates that it is just shading into being a buyer’s market.