With winter in full swing, most residents are out enjoying the mountains in Squamish. While others are hoping for spring and a break from Shoveling.
Housing markets also have seasonal ebbs and flows, with winter traditionally being a slower time for home sales. Their are many changing factors, new laws and the influence of the Vancouver market which are impacting home sales and prices in Squamish.
We put together this winter market update to give you an overview on what is happening both locally and regionally to impact the Squamish Real Estate Market. For most current conditions in an ever changing market, be sure to contact a Local Agent today.
Prices Are Dropping in Vancouver
The latest news from the Vancouver real estate market is the 39.5% decrease in home sales in January, down from the year before. Some are hoping that this marks the start of the end of insane home prices in Vancouver, as the cost of housing is not relevant to average household income.
In the Greater Vancouver Area the benchmark price generally dropped, the composite price is now $896,000, which is a 0.2% decline from the month prior. This adds up to a 3.7% decline over the past 6 months.
However, According to Better Dwelling prices in Squamish and the Sunshine coast saw increases of 2.1% and 2% respectively.
For more information on the Changing Vancouver Market check out this great read by Better Dwelling
Low Rental Vacancy in Squamish
Currently, Squamish has the lowest apartment vacancy rate in the entire province with zero available units for rent. This low rental vacancy means that the Squamish Market is appealing to investors who quickly snag up new units.
This makes it challenging for new prospective residents to move to the area, and increases the cost of living for locals. The challenge with affordable housing and low rental vacancies impacts local businesses and the local economy, who have challenges finding homes for staff.
During the peak winter months, some local employers such as Sea to Sky Gondola now provides housing for their employees. Without employer-offered housing, many local businesses would find it hard to employ sufficient or adequate help.
Despite the current rental housing shortage in Squamish, there is relief in site for would-be homeowners and renters. Real estate projects are slated for completion in the near future. While it will be interesting to see how the Vancouver market will impact Squamish.
Balancing Market in Squamish
In 2016, Squamish saw apartment prices have increased 31 percent with an average unit price hovering around $367,800. Single family residences have also experienced a significant price increase of 29 percent and average $787,200. Single family residences typically remain on the market slightly longer than townhomes or apartments which tend to sell rapidly; townhomes average of 13 days before being sold.
While the amount of home sales has slowed in January 2017, the median prices have remained stable.
With more inventory coming onto the market, it is looking like we will be entering more balanced market for both buyers and sellers.
According to Black Tusk Realty, In 2017 Squamish will very much be on the radar for many buyers. This is a positive sign but new product, along with an increase in inventory, will mean a more balanced market for both buyers and sellers.