We’ve said it before, and we’ll say it again; real estate is a local phenomenon. We simply can’t stress that enough – and this market report is no different. Don’t believe us, just check the facts. The press releases from the Greater Vancouver Real Estate Board paint a broad picture as they cover both sales and listings from Maple Ridge to Whistler. Within each geographical area there are forces at play which will dictate what each local area is experiencing. However, in order to fully understand what the real estate market is actually doing, you need to get specific information about that area.
The reports from the Greater Vancouver Real Estate Board would have you believe that sales of property are at an all-time 10 year low and prices are declining. But why is that? The pressure on pricing moving downward is a direct correlation to the sales volume but will vary depending on the type of homes available for sale and the amount of inventory. The headlines suggest that sales are down by 40% and that prices are lower by 11% however in the high-end/luxury properties, prices have gone down by as much as 20%.
So where does Squamish fit into this equation?
Reports show that there have been less sales in the overall market, which is lower by 11%. This can be attributed to the very sluggish start to this year. That being said, in the past two months the market has rebounded; sales are showing we are above last year’s numbers! Single family homes have remained at a steady-pace based on last year’s numbers. The only difference we are seeing is fewer sales of homes above the 1.5 million-dollar list price. We have seen many of these higher end homes adjusting their pricing downward in an attempt to get more in line with current sales trends. Properties that require sweat equity are selling quickly and homes with revenue producing suites in the 900K to 1.2 million range are in very high demand.
Town homes have seen a 7% decrease in median prices from this time last year and the sales volume is lower by about 14%. As buyers are not feeling any great sense of urgency, the number of days a townhouse is on market has now increased for the sellers. In order to help speed up the sales process, sellers should have a more price sensitive asking amount.
Apartments are the least active market area for Squamish at the moment. Sales are down by 28% but we haven’t seen any drop in asking price over the past year. Listing inventory is slightly lower than a year ago and days on market have tripled compared to 2018. The larger two- and three-bedroom apartments are the most popular, as it allows the buyers to have more flexibility in their lifestyle.
As always, the best way to ensure you are understanding the current market is to work with your local real estate agents. This allows you to not only have a positive buying and/or selling experience, but it gives you access to their expertise and local knowledge. Success only happens when you work as a team and have your best real-estate-goals in mind!
Information deemed to be accurate, all information taken from the MLS Database, July 2019