Is the Chilliwack Real Estate Market Back?

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The ‘Wack Is Back: Investing in the Chilliwack Real Estate Market in 2024

Jayden Lee, local Chilliwack realtor, has felt a change in the momentum of Chilliwack real estate since the beginning of 2024.

Houses that were sitting on the market for 60-90 days over the winter now have accepted offers. Buyers are looking again and the market is picking up steam.

How Chilliwack has changed since 2020

During the pandemic, Chilliwack was one of the markets that appreciated the most. But it was also one of the markets that fell the most.

In 2020, a ton of people moved out to Chilliwack looking for more space and affordability since they no longer needed to be in an office in Vancouver every day.
As word started getting out about Chilliwack’s affordability, developers came to town and Chilliwack really started to grow. Businesses moved in, breweries opened up and the city invested a lot in revitalization.

The Chilliwack real estate market peaked in February 2022 for detached homes at a price of $1,000,076. But Lee shares that prices in Chilliwack went up too fast. By the time the detached home market reached the bottom in December 2022, the average price was $745,000.

It’s a similar story with townhouses. The peak of the market (Feb 2022) saw an average townhome price of $764,000 and the bottom of the market (Oct 2022) saw an average price of $524,000.

Looking at Chilliwack’s 10 year history, pricing usually increases very gradually. COVID completely changed the game and resulted in a sharp increase followed by a sharp 30+% decrease.

However, there has been some recovery. As of January 2024, the average detached home price in Chilliwack is $826,000 and the average townhome price is $619,000. Townhomes have actually outperformed detached homes (18% increase from the bottom), which speaks to the demand for affordability.

Who is buying real estate in Chilliwack now?

Over the last couple of years, Lee believes about 70% of people looking for real estate in Chilliwack were from out of town. As the spring market picks up, he expects those out of towners to return.

What is the rental market like in Chilliwack?

The vacancy rate is around 1% in Chilliwack. Lee shares that for a studio, you could expect to rent it out for $1000-1200 per month. For a one bedroom, monthly rent would be around $1300-1500.

Basement suites are actually one of the easier property types to rent out. Lee has a rental property with a basement suite and shares that he didn’t even have to list it; he rented it out by word of mouth.

Like trying to apply Vancouver rental tactics to Calgary, you’re going to misdiagnose the market if your plans don’t make sense for Chilliwack. Lee points out that beyond car culture, Chilliwack has a truck culture. So a lot of people prefer to rent a basement suite or mobile home where they can park their truck, rather than a condo.

When pipeline workers were in town temporarily, that drove up the rental market. So Lee warns prices may come off a bit now that the pipeline work is ending. But with younger families continuing to move to Chilliwack, Lee is confident pricing will remain strong.

Of all the real estate markets in Canada,why should someone invest in Chilliwack?

Chilliwack has grown a lot in recent years. Lee mentions new businesses that have moved in, like Molson Coors and Red Bull, as well as new amenities for residents.
Chilliwack is situated between two rivers, close to Cultus Lake and has lots of opportunities for hiking. It’s central if you want to go to Whistler, Vancouver, Kelowna or across the border. There’s talk of a new gondola coming in, which would drive tourism to Chilliwack.

The housing market in Chilliwack is rebounding. Lee shares that Chilliwack is up 11-18% from the bottom and he doesn’t see another crash.

There’s a lot of value to be had in Chilliwack. We know Chilliwack can get to those high numbers again, and while they probably won’t go up as quickly as they did during the pandemic, the numbers are rising.

3 investment properties to buy in Chilliwack

1) Detached home

Lee believes in buying the land and thinks a detached, single family home is the best option in Chilliwack. Depending on your situation, that could be a good place to make some money. If you’re able to ride out high interest rates for a couple of years, you could be cash flowing.

2) Condo

Lee shares that you can get a one bedroom condo in the nicest area of Chilliwack for under $400,000 and rent it out for $1300/month. Condos near the University of Fraser Valley will be very popular with young people.

3) Townhouse

There’s not a huge spread between townhouse pricing and detached home pricing in Chilliwack and the rental prices are also similar. For example, Lee shares that you could buy a townhouse for under $600,000 and rent it out for $2200/month.

However, he does think you’d have an easier time renting out the upstairs of a detached house.

Where to buy in Chilliwack

Garrison

Lee recommends Garrison for its walkability and lifestyle. As a resident of the neighbourhood himself, Lee loves walking to coffee shops and grocery stores.

There are good transit connections, as well as the university and a river across the street. If you’re renting a condo, this is where you want to be.

Promontory & Sardis

Up on the hill, Lee points out Promontory and Sardis as good options. You’ll save money compared to buying in Garrison and still see good rental rates.

Cultus Lake

Lee would love to have a recreational property on Cultus Lake. The main area by the beach is leased land through the government with a 21 year lease.