As you may have heard Real Estate is local, so what does that mean? Well what is happening in Vancouver or Chilliwack is not what is happening in Squamish. To understand the true market conditions it takes a local expert to give you the most comprehensive and accurate information on the facts and trends. How the single family home market is behaving is not always what the town house sales are doing, and in the same respect, what town houses are doing is not always what we see happening in the apartment market.
2017 began with a very slow start to sales and listing activity in Squamish. It would seem the big factor was the very tough winter market we all experienced and it was not until well into March that we began to see an up tick in the general market conditions. April moved along then we experienced similar sales activity in May to what was seen in May 2016 (the second best month of that year after the record sales in June).
So with 6 months worth of statistics in the books we can start to get a better picture of what may lay ahead for the balance of 2017. While 2016 was a record breaking year in most of the Lower Mainland it was actually 2015 that Squamish really had it’s break out year. It was only apartments in 2016 that out preformed in sales and this was mostly due to new apartment building in the pre-sale market. Both single family and town house number were down in 2016 compared to 2015 transactions.
Single family homes sales are down this year by 14%. Median home prices have gone up 10% year over year making a less affordable purchase for the average home buyer. Town homes have seen an increase in volume up by 11% when compared to 2016 along with an increase in median sales price of 11%. As of June 30th apartment sales show as being 20% below 2016 volume but again median price up by 11%.
The listing inventory remains at record lows in both town houses and apartments leading to multiple offers on well priced properties. The new product in several areas of the community is helping spark new interest mostly from outside the Squamish area. Single family home sales as mentioned are down as the median prices are continuing to move upward. The possible increase in the interest rate could have an affect on the market as many of the buyers tend to be making first time purchases and funds are often tight when making that initial buy. The same conditions do not seem to be as applicable in the single family market but there could be some adjustments if the buyers moving up are not experiencing high returns on their sale prices.
The balance of 2017 seems to be trending to sales in the single family market on par with last year, although prices seem to be stagnate. The town house and apartment sales should continue to be brisk as they are the most affordable and rental prices remain high so there is appeal to homeowners as well as investors. As an increase in interest rates may have some affect on these property types, it will remain to be seen how pricing could be affect going forward.
Keeping in communication with your Realtor will give you the most up to date information on what is happening and if now is the best time for you to make your real estate decisions. Get in touch for more information.