What’s Happening with the Squamish Real Estate Market?

Posted on by Meghan

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For better or for worse, if there’s one thing people like to talk about right now it’s real estate. Real estate, like the weather, is one thing that impacts nearly everyone and therefor everybody has an opinion. Whether you are a property owner, a tenant or a local business person, housing supply and affordability are pressing issues, especially here in Squamish.

After witnessing rapid price gains, development, and population growth in the last few years many people are trying to grapple with the implications of such changes. Add to this recent measures to cool the property market including a new mortgage stress test and rising interest rates, this atypical real estate market becomes even more complex. As we move from houses selling within days for well above asking price, to a market that seems to be stabilizing, there are many rumours and opinions about the fate of the Squamish market.

So what is really happening with the Squamish real estate market? Is it tanking? Stabilizing? Cooling? To get an accurate picture we need to look at different segments of the market and a wide scope of metrics. Here is what the data says about the Squamish real estate market in 2018.

Condos

The Squamish condo market started off strong in 2018. In April, which is typically considered the hottest month for real estate, there were 12 sales (compared to 18 in April 2017), the average sale price was $407,917 ($376,494) and the average days on the market was 20 (15 in 2017).

Overall, sales were slightly down for condos this spring compared to 2017. Days on the market were roughly the same, and prices were up.

Fast forward to August, which is typically a slower month for real estate, and there were 16 condo sales in 2018 compared to 18 in August 2017. Average days on the market in August for condos was 21 down from 26 in August 2017 and the average sale price in August 2018 was $443,838 (compared to $445,861 in August 2017).

The condo market in Squamish looks to be stabilizing based on these stats. Where we saw a sales price increase of 16.7 percent between August 2016 and 2017, there was a slight sales price decrease (of -0.45) between 2017 and 2018. The numbers of sales and days on market were about the same.

Townhomes

Townhomes are a sought-after property type in Squamish. In April 2018 the Squamish real estate market saw 16 townhome sales, 10 less than April 2017. Despite the drop in sales, prices increased with the average price of a townhome selling for $712,817 in April 2018 compared to $605,602 in April 2017. The average days on market this April was 14 while it was 24 in April 2017. It’s important to note in April 2017 there were 48 townhomes listed while in 2018 there were only 21, less than half! This explains the decreased number of sales, lower days on market and higher sales price.

Now looking at August 2017 and there were only 8 townhome sales (with 43 total listings), compared to 12 sales in August 2017 (with 39 total listings). The average days on market in August 2018 was 25, while in 2017 it was 31, and the average sales price this August was $672,000 (slightly down from spring) and $620,558 in August 2017.

The townhome market experienced very low inventory at the beginning of the year which pushed prices up and attributed to low days on market. Inventory is now similar to levels at this time in 2017 and prices have increased.

Detached Homes

The detached home market, and in particular, homes over the $1.5m mark are innately more impacted by the affordability circumstances we are facing in Squamish. Despite this, detached homes still performed well in 2018.

In April 2018 there were 24 sales (from 132 listings) compared to 34 sales (from 125 listings) in April 2017. Days on market in April 2018 was 24, while in April 2017 it was 40. The average sales price in April 2017 was $1,039,226 while April 2017 it was $949,828.

In August there were 22 detached home sales in Squamish out of 152 listings. In August 2017 there were 32 sales out of 123 listings. The average days on market this August was 74 compared to 41 last year, and the average sales price in August 2018 was $1,035,159 compared to $916,547.

Similar story to other segments, prices have increased while sales are down. In the case of detached homes this summer, they are sitting on the market much longer then this time last year.

So what is happening with the Squamish real estate market?

A lot of speculation, a lot of catastrophizing but really, we aren’t seeing anything drastic happening. Sales are slowing down (slightly) and prices growth is moderating. It is common knowledge that what we experienced between 2015-2017 was unsustainable growth. After a booming few years the market now appears to be normalizing and becoming balanced.

This is great news for buyers who have been on the disadvantaged side of the deal in what was a strong seller’s market over the last few years. There are a lot of interesting dynamics playing out in Squamish at the moment that go hand in hand with population growth such as housing affordability, economic development and transportation. Squamish is an exciting place to live and it will continue to be a desirable location for lifestyle driven individuals to move. With large scale developments on the horizon set to transform the town even further it is doubtful the real estate market will take a significant downtown. For now at least, it’s business as usual for real estate in Squamish.

 

About Meghan

Meghan is a real estate agent who is passionate about connecting lifestyle driven individuals to her vibrant town of Squamish, BC. Meghan was born and raised in Squamish, spent 15 years living abroad, and is now back partnering with her mother Nanci Fulton who has been selling real estate in Squamish for 30 years. Meghan loves representing buyers, welcoming them to her community and helping them find their perfect place to call home.