Hi Everyone!


New listings continued to climb throughout March giving buyers a lot more options to choose from. Currently the average price of homes is showing the effects of this market shift with Chilliwack detached homes dropping 4.8%, and townhomes dropping 5.9% from February's peak. In the Fraser Valley board, we see similar drops with -5.9% on detached homes, and -2.2% on condos. On the other hand, the more affordable condos are continuing to rise in price with a 3.75% increase from the previous month. We are hoping that the influx of new listings will contribute to slowing down the price growth. This is good news for buyers, and sellers who want a little more variety to choose from before committing to a sale.

Chilliwack had a total of 861 active listings in March which is an increase of 49.2% since February's 577 active listings. When we compare the active listings to last year we are seeing a 13.7% increase at 861 active listings in March 2022 compared to 757 in March 2021.

Over the Fraser Valley the total active inventory was 4,699 this month, a decrease of 6.2% compared to last years 5,012 active listings, however, 24% higher than last month.

If you've been waiting to sell your home, sooner may be better. With the rise in inventory and the recent rise in interest rates there is a possibility prices could soften.

Have you been thinking of buying or selling but you're not sure if now is the right time? Give me a call or text at 604-798-3960, I am happy to look into your current situation and provide you will all the details you need in order to make an informed decision!
 
 
In other news

Interest Rates

On March 2nd, the Bank of Canada increased the overnight rate from .25% to .50%.

This has caused a lot of stress for home owners and new buyers trying to get into the market. Here is a few key points to ease any concerns you may have about getting a mortgage!

1. Your qualification does not change!

2. If you have a mortgage right now with a variable rate payment, for every $100,000 borrowed right now your payment will only go up by $12.

3. If you have frozen payments there will be no change at all.

4. If you are a seller you can still sell!  Buyers still qualify the exact same as they did before, the stress test has not changed.

Source: Thrivemortgage.ca

BC Cooling Off Period

The BC Government has announced the intent to introduce a "cooling off" period during the Summer of 2022.

A cooling off period would give buyers the right to withdraw from a purchase agreement within a specific period of time after an accepted offer with zero consequences. Currently the only way to withdraw after an accepted offer is if specific subject conditions are not met that were agreed upon on the contract.

The government's goal with the cooling off period is to reduce the amount of rushed first-day-on-the-market multiple offers, and give everybody the chance to do their due diligence and get the home inspected, and seek mortgage approvals. However, something to be considered is the effect it may have on home sellers. If the cooling off period is implemented, there is nothing stopping buyers from putting offers on multiple homes knowing that they have plenty of time to think about it to back out if needed. This could potentially tie up homes for sale for weeks at a time.

In order to secure a purchase and sale at the same time you need the dates to line up perfectly. In cases where there are sometimes 4-6 homes in a row being sold at the same time, it sounds disastrous if no one can even be sure they have a firm sale for weeks after they have accepted an offer to sell.

I for one am hoping the Government releases more information on this bill before implementing it. I have a hard time imagining this will help with the affordability crisis, it just seems like a good way to introduce a lot of stress and uncertainty in to the process of selling a home.

I'll be sure to keep you all posted on the updates regarding this bill.


Source: BCrea
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