I’m sure you have read the headlines that the sky is falling in the housing market. The media truly does like to instill fear, as that’s how they make money. The market outlook is not as bad as they make it out to be.
Yes, the market is changing – it has been for a few months now.
Yes, the market will see an impact from the interest rate rises.
Yes, that means downward pressure on pricing, longer days on market and increasing inventory.
No, 20%-30% annual growth is not sustainable over the long term.
Real talk: Leading economists on Bay Street are predicting a 20% decline in sales prices over the next year for Canada with areas that have seen the fastest growth to be the most impacted. If that is true, that would essentially take us back to early 2021 pricing -> that’s mid-pandemic pricing not pre-pandemic pricing.
It is still a good time to sell as employment rates are high, demand for this area still exists and pricing is still the much higher than it has ever been historically. June stats even show a 30% increase year-over-year on the average sold price throughout Squamish. See graph below.
My point being, that if you are looking to upsize or enter into the market, today’s market presents a wonderful opportunity. You are able to negotiate and conduct proper due diligence again – these are all very positive aspects. As a seller, you can still benefit from massive growth over the last 2-5 years – you are not selling at the same pace as Q1 2022 but you are still miles ahead.
Real Estate is a tangible asset that provides you shelter and safety while accumulating wealth over time. It’s also important to remember that it is a long term game, you should expect to hold onto real estate for 3-5 years to ensure adequate growth. Of course over the last 2 years that timeline has been a lot less, but within traditional market with 3-6% annual growth 3-5 years is a fairly standard timeline.
Enough chat, here are the numbers:
SQUAMISH – ALL PROPERTY TYPES
Average Sold Price: $1,245,200 | +30% year over year
Average Days on Market: 17 days | -26% year over year
New Listings: 104 new listings | +35% year over year
Sales: 45 sales | -34% year over year
Absorption Rate: 24% | -51% year over year *above 22% is sellers market*
DETACHED
Average Sold Price: $1,708,444 | +14% year over year
Average Days on Market: 18 days | -10% year over year
New Listings: 52 new listings | +48% year over year
Sales: 18 sales | -5% year over year
Absorption Rate: 16% | -31% year over year * 12% – 22% represents balanced market*
TOWNHOUSE
Average Sold Price: $1,040,267 | +18%
Average Days on Market: 13 days | No change year over year
New Listings: 23 new listings | -8%
Sales: 15 sales | -46%
Absorption Rate: 44% | -54%
CONDOMINIUM
Average Sold Price: $650,400 | +12%
Average Days on Market: 18 days | -55%
New Listings: 27 new listings | +107%
Sales: 10 sales | -52%
Absorption Rate: 28% | -70% *above 22% is sellers market*
If you want to have a honest chat about how you can make your real estate dreams come true in this market, lets connect.
