Understanding the market conditions for both sellers and buyers moving forward will be key to achieving your real estate goals in Squamish. Working with a full-time local real estate professional will give you the best advantage when things are notably changing in the real estate landscape. The sky is not falling, but we are experiencing what might be referred to as a normal period of adjustment. After a sustained period of rising prices and lower than normal inventory levels, the market is correcting.
The largest impact that is being felt is the significant decline in the volume of properties changing hands, which have been slowing since the beginning of 2018. Single family home sales are down 32%, while attached property sales have decreased by 41% and apartment sales have reduced by 20%. It is interesting to note that for the first half of the year, sales prices did continue to rise; however, this trend also corrected through the summer months and we are now seeing declines in sales prices. This is expected market behaviour as inventory is slowly increasing and there are less buyers in the marketplace. Those who are looking to purchase in Squamish now will find that they have time to look at potential purchase in their own timeframe as days on market for listed properties has also lengthened.
If you are considering a purchase, one thing to keep in mind is that interest rates are expected to go up again in the next 6 months. So, if you are delaying your purchase to see if prices will continue to decline, the drop in price could be off set in a higher mortgage payment. With the slower pace of sales you will have plenty of time to make the right choice with the information and guidance your real estate agent can provide to you about the current market conditions that are relevant to your specific goals.
If you are thinking of selling, the assistance of your local Realtor is more important now than ever. Ensuring that you have the most up-to-date statistics and information about market trends will be an important part of your sales strategy. As the volume of sales has dropped and prices have moderated, knowing how to best show case your property will be key to achieving your sale. Days on market for all property types has gone up and for home sellers one on the toughest parts of selling is the wait. Ensuring that realistic expectations are set from the beginning of your sale process will be important in helping you through what is often a stressful process.
The bottom line is that sellers still need to sell and buyers still need to buy. Patience and good information will be the most important things moving forward.