Squamish and Whistler both saw reduced sales volumes in June, with Whistler seeing 29 sales (compared to 60 in June 2021) and Squamish seeing 27 sales (compared to 69 in June 2021). Of those sales, 79% of properties sold in Whistler went for under asking price and 74% of properties sold in Squamish went for under asking price.
The factors discussed in my last newsletter persisted through June and early July (namely geopolitical risk, inflation, and increasing interest rates). As a result, prices are beginning to retreat in both markets. With the reduced sales volumes, it’s taking longer to sell properties and inventories are building. This presents a welcome change of tide for buyers, and a not so welcome change for sellers.
Affordability has been significantly eroded since the beginning of 2022 due to interest rate hikes, and the Bank of Canada surprised everyone this week by delivering a full 1% rate hike on Wednesday. It would have been a good thing for real estate markets to balance, but it’s looking more and more like we’re swinging from one extreme to another.
For those looking to sell, even despite the seemingly gusty headwinds, remember that prices are still up over 50% in Whistler and 41% in Squamish compared to January 2021 (based on the MLS Home Price Index for each). If you’re wanting to sell in the near term, it is unlikely you’ll obtain the sale price you had in mind 4 months ago. Price, staging, and strategy need to be on point.
For those looking to buy, this is your time. If you’re not quite ready and want to see how things shake out, use this time to get out and get clarity on the places and areas that you like and want. We all just witnessed how quickly the tide can change – once there’s any indication that interest rates could begin heading back down, sentiment will likely snap back in the other direction again.
Scroll down for a full stats package from the Real Estate Board of Greater Vancouver, which looks at the whole region, as well as the Squamish and Whistler real estate markets specifically. And please reach out with questions anytime!
– Lindsay
For more updates and information, follow me on Instagram @squamish_whistler_real_estate
Call me: 604-612-1484