Sutton Showplace Realty (2015) Chilliwack

  604-858-1800 
  • Sutton Showplace Realty Chilliwack
  • 15 February 2018

New, stricter mortgage rules in place as of Jan. 1 may have cooled the local market slightly, but with the fewest numbers of listings in a decade, prices continue to rise and the Chilliwack and District Real Estate Board (CADREB) area remains a seller’s market.

Those homes that are being snapped up are increasingly on the higher end pointing to more and more buyers rolling into town from west of here.

“We continue to see an influx of interested buyers from Greater Vancouver and surrounding areas,” CADREB president Greg Nord-Leth said.

“A million dollars is a lot of money, but that may only buy you an older home in the Metro area in need of renovation, but it buys a luxury home here. There is little hope of buying more than a small condo in Vancouver for $500,000, but that could buy you a home with a yard in the Eastern Fraser Valley.”

Of the 184 homes sold in the CADREB region in January 2018 – which includes Chilliwack, Agassiz, Harrison, Hope to Boston Bar – the average price was $477,586, that’s up 10.5 per cent from $432,042, the average price of the 182 homes sold in January 2017.

That compares to the average sale price of $464,897 for all of 2017, up 16.8 per cent from 2016, which was similar to the 18.4 per cent increase in 2016 versus 2015.

What real estate in Chilliwack in 2018 will look like is the subject of some speculation with various factors. The hotter markets to the west in the Fraser Valley and Metro Vancouver are causing a serious spike in demand here, which, coupled with the shortage of listings, is pushing prices up.

“While no doubt the newly tightened mortgage qualifications played a role, the lack of inventory remains a concern locally,” Nord-Leth said in a CADREB press release. “Realtors report that it is becoming increasingly difficult to find properties that meet their client’s wish list.”

Adding uncertainty to the market is what impact the new mortgage “stress test” might have. It means qualifying for a mortgage is a little tougher as it’s based not only on what a potential home buyer can afford now, but what they would be able to afford if the interest rate rise.

There were 91 single-family homes purchased last month compared to 88 in January 2017. On first blush, that might show the mortgage rules are not having an impact. On the other hand, it could mean the new rules are impacting people who might have otherwise bought elsewhere in the Lower Mainland but instead are looking to Chilliwack for its relative affordability.

Of the 184 homes that sold in January, the highest number (25) sold in the $450,000 to $499,999 range. That was followed by 18 sales in the $550,000 to $599,999 range, and 17 at the $600,000 to $649,999 level.

There were two sales of homes over the $1 million mark, with one of them topping $1.5 million.

Anecdotally, realtors say many homes are currently selling above asking prices.

At about two thirds of where realtors would like this number to be, there were just 663 active listings at the end of January down even from the low number of 747 a year ago.

“It’s the lowest number of listings in more than a decade,” Nord-Leth said. “It remains very much a seller’s market.”

https://www.agassizharrisonobserver.com/news/chilliwack-real-estate-sales-remain-steady-prices-continue-to-rise/


  • Sutton Showplace Realty Chilliwack
  • 22 January 2018

Short Version

The math is as follows:

A payment increase of ~$12.69 per $100,000.00 of mortgage balance. (unless you are with TD or a specific Credit Union, in which case payments are fixed and change only at your specific request)

i.e. – A mortgage balance of $400,000.00 will see a payment increase of ~$50.78 per month

Long Version

Qualification for variable rate mortgages has been at 4.64% or higher for some time. This required a household income of greater than $70,000.00 for said $400,000.00 mortgage .

Can 99% of said households handle a payment increase of $50.78 per month? Yes.

Will 99% of households be frustrated with this added expense? Yes.

Ability and annoyance are not the same thing.

Have these households enjoyed monthly payments up to $216.80 lower than those that chose a fixed rate mortgage originally? Yes.

Are 99% still saving money over having locked into a long term fixed from day one? Yes.

Should I lock in?

A more important question is ‘why did we choose variable to start with’? And this may lead to a critical question ‘Is there any chance I will break my mortgage before renewal’?

The penalty to prepay a variable mortgage is ~0.50% of the mortgage balance.

The penalty to prepay a 5-year fixed mortgage can increase by ~900% to ~4.5% of the mortgage balance. A massive increase in risk.

There are many considerations before locking in, many of which your lender is unlikely to discuss with you. It’s to the lenders advantage to have you locked into a fixed rate, rarely is it to your own benefit.

At the moment decisions are being made primarily out of fear. Fear of $12.69 per month per $100,000.00.

What about locking into a shorter term?

Not a bad idea, although this depends on two things:

  1. Which lender you are with as policies vary.
  2. How many years into the mortgage term you are.

If your net rate is now 2.95%, and you have the option of a 2-year or 3-year fixed ~3.00% – this may be a better move than full 5-year commitment.

Do not forget the difference in prepayment penalties, this is significant.

Bottom line – Know your numbers, know your product, and stay cool.

These are small and manageable increases.

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Matt Robinson - Dominion Lending Centres.


  • Sutton Showplace Realty Chilliwack
  • 19 January 2018

Canada's biggest lenders have raised their prime lending rates on the same day the country's central bank moved its benchmark interest rate a quarter percentage point higher.

The Bank of Canada raised its key lending rate by a quarter point to 1.25 per cent Wednesday morning, the third time it has moved its benchmark rate from once-record lows last summer.

The bank rate has an impact what Canadians pay lenders for things like mortgages and personal loans. While the move means borrowers can expect to pay more, savers can expect to earn more, too, on savings accounts and guaranteed investment certificates.

That's exactly what happened later on Wednesday afternoon, when Canada's five biggest banks — Royal, TD, CIBC, BMO and Scotiabank — all hiked their own prime lending rates by a quarter percentage point, effective tomorrow.

As of Thursday, Jan. 18, all five now have the same prime lending rate of 3.45 per cent. Prior to the Bank of Canada's move, their rates were all 3.2 per cent.

The central bank was widely expected to raise its rate after data in recent months showed gross domestic product growing, the job market healthy and the cost of living ticking higher.

The bank's benchmark rate is now at its highest level since 2009.

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Article from http://www.cbc.ca/news/business/bank-of-canada-rate-decision-1.4490918


  • Sutton Showplace Realty Chilliwack
  • 15 January 2018


  • Sutton Showplace Realty Chilliwack
  • 10 January 2018

If you've been  thinking of starting a career in real estate, but are not sure if it is the right path for you, you can book an appointment with us and we will go over all the details with you and help you make a sound decision.

Our brokerage will not only give you the training and support you are looking for but will do so without burdening you financially. We have a fair fee structure that is competitive with other offices.

As a successful and growing Canadian company, our brokerage will assist you by teaching you the tools to keep your business running smoothly, and growing at the same time.  Sutton offers you support, sales tools, technological tools, support, growth, and a brand and logo you will feel proud to have on your marketing materials.

Below are a few tips to keep in mind if you're interested in becoming a Licensed Realtor:

  • It's important to be self-motivating and set goals to achieve. Realtors work with minimum supervision.
  • You must be excellent with communicating and returning calls/emails to clients and colleagues in a timely manner. Can you speak easily with a stranger on the phone, or knock on a strangers door?
  • Maintain a positive attitude and try not to jump to conclusions before finding out facts.
  • You can set your own work hours, work from home or an office at a brokerage.
  • It's important to continue your real estate education and keep up to date with the latest technologies, so you can offer clients educated advice.These are just a few of the skills that we believe are important to Realtors to be successful in their careers.

If you'd like to learn more, please contact our Managing Broker, Jake Siemens. jsiemens@sutton.com |  604-858-1800. He'd be happy to meet with you, show you around our office and answer any questions you may have about real estate. If you're already licensed and looking for a friendly and professional office to join, we'd love to have you!


  • Sutton Showplace Realty Chilliwack
  • 03 January 2018

The housing market in BC’s Fraser Valley region experienced skyrocketing demand and prices this year, but will the region continue to be a hotspot in the New Year?

In November 2017, the region saw a roughly 40 per cent year-over-year increase in home sales with a total of 1,743 units, according to the Fraser Valley Real Estate Board’s (FVREB) latest data release, published this month.

FVREB president Gopal Sahota says although “2016 was a hotter year, 2017 is on fire” with attached sales driving the market.

“The attached homes, which are the multi-family [units] such as townhomes and condos, are in very strong demand as opposed to historical demand on detached homes,” says Sahota.

Last month, attached sales represented 53 per cent of all market activity.

Instead of buying pricey homes in Metro Vancouver, Sahota says buyers are opting for attached homes in Fraser Valley because of their more affordable prices.

The benchmark price of a condo in the Fraser Valley was $376,700 in November, a 36.6 per cent increase compared to a year ago. For a townhome, the benchmark price was $505,700, up 19 per cent compared to November 2016.

According to Sahota, the key reason for the Valley’s soaring demand is BC’s booming economy.

“The communities in the Fraser Valley are putting a lot more effort into creating jobs in this region and the growth and projections are quite high,” says Sahota.

And the FVREB president says strong demand could continue in 2018 as the economy continues to improve.

“Consumer confidence is strong out there and jobs are coming in. People feel more confident jumping into bigger ticket items like homes,” says Sahota.

However, there are potential red flags that could impact demand next year.

On January 1, the Office of the Superintendent of Financial Institutions’ (OSFI) new stress test will require all uninsured mortgage borrowers to qualify against the Bank of Canada’s five-year benchmark rate, or at their contract mortgage rate plus an additional two per cent.

Sahota says the mortgage rules will likely have an effect on slowing down the market. He adds that possible interest rate hikes next year could also be a headwind that impacts demand.

As for prices next year, Sahota says it’s a waiting game but prices will rely on the balance between supply and demand in the market.

Article: https://goo.gl/2nADZf


  • Sutton Showplace Realty Chilliwack
  • 14 December 2017

High Chilliwack home prices, sales forecast to moderate

2018 sales should be lower than 2017 and 2016, which was the hottest year on record.

As house prices rise and supply dwindles, a cooling may be on the horizon thanks to mortgage changes in the new year.

The B.C. Real Estate Association’s (BCREA) fourth quarter housing forecast calls for a drop in sales for 2018 in the Chilliwack and District Real Estate Board (CADREB) along with just a 4.3 per cent increase in price.

Provincewide, the BCREA forecast calls for an 8.8 per cent decrease in sales by the end of 2017 and a further 10.4 per cent drop in 2018.

For CADREB, the BCREA forecasts a 13.1 per cent drop in sales below the record 4,306 in 2016.

“Housing demand across the province will face increasing headwinds in 2018,” according to Cameron Muir, BCREA’s chief economist. “A rising interest rate environment combined with more stringent mortgage stress tests will reduce household purchasing power and erode housing affordability.”

Muir says the five-year qualifying rate is forecast to rise 20 basis points to 5.15 per cent by the end of 2018. Add that to an estimated 20 per cent decrease in purchasing power thanks to new qualification rules for conventional mortgages means the market should cool.

As for prices, the average price of a home in CADREB area — which includes Chilliwack, Agassiz, Harrison Hot Springs, Hope, Boston Bar and in between — was $397,911 in 2016.

The BCREA forecasts the average MLS price in CADREB to average $469,400 for the entire 2017 up 18 per cent, the highest increase of the 11 real estate boards in the province.

That compares to the average sale price last month locally of $484,753. With a BCREA forecast average sale price in 2018 of $489,900, that would require a stability in the local market unprecedented over the last decade.

Indeed, BCREA forecast just a 4.3 per cent price increase year-over-year, close to the B.C.-wide prediction of 4.6 per cent from $712,300 in 2017 to $745,300 for 2018.

And while the fewer sales for 2017 and 2018 are just that, fewer sales, these numbers will still be the second and third highest years on record.

What analysts will be paying particular attention to in 2018 is the much-needed increase in supply. Supply is at near decade lows, which, coupled with increasing demand has led to the rapid rise in home prices.

BCREA says the combination of new demand coming on line along with decreased consumer demand due to the new rules should make for a more balanced market in 2018.


Article: BCLocalNews.com


  • Sutton Showplace Realty Chilliwack
  • 29 November 2017

Chilliwack among top 10 B.C. cities to buy real estate

For anyone looking for a place to invest a real estate dollar, Chilliwack is right up there.

That’s according to the Real Estate Investment Network (REIN), which ranked the city seventh in its list of top 10 towns and cities across British Columbia.

“People choose to live in Chilliwack because of lower tax rates, affordable housing costs and lifestyle opportunities,” according to the REIN report.

“[S]trategic investors will see that Chilliwack is in a favourable position for a strong, long-term real estate market.”

Full article here: http://www.theprogress.com/news/chilliwack-among-top-10-b-c-cities-to-buy-real-estate/


  • Sutton Showplace Realty Chilliwack
  • 22 November 2017

Welcome to Sutton Showplace Realty, a long established real estate company located in Chilliwack. We're 100% Canadian and locally owned. Please contact us today so we can assist you with any of your real estate needs. Visit our facebook page to keep up to date on new listings as they hit the market, and receive updates on real estate news and mortgage changes. https://www.facebook.com/suttonshowplacerealty/


  • Sutton Showplace Realty Chilliwack
  • 15 November 2017

The 23rd Annual REALTORS Care ®️ Blanket Drive is gearing up once again. Donations of any new or gently used items such as blankets, coats & warm clothing can be dropped off at Sutton Showplace Realty: #100 7134 Vedder Rd, Chilliwack. Mon-Fri 9-5pm or Sat 10-3pm as well as at any other Real Estate Office. We have a location available in Abbotsford, please call 1-877-858-2408 to ask for the drop-off address. For more information please visit http:// www.blanketdrive.ca/