Winter decided to show up! What a difference compared to this time last month. I hope you’ve been enjoying some of the snow!
Real estate markets remain relatively muted, with sales activity below historical averages in both Squamish and Whistler. There were 43 sales in February in Whistler, which is below the five-year average (2019-2023) of 63 sales in February. Of these Feb 2024 transactions, 70% went for under asking, 18% went for asking, and 12% went for over asking.
In Squamish, there were 28 sales in February, whereas the 5-yr average is 54 sales. Of these, 74% went for under asking, 17% went for asking, and 9% went for over asking.
Squamish inventory remains low, especially when considered against the backdrop of how much new supply has been brought on in recent years. Whistler inventory is starting to climb and now sits at the same level as when the market was moderately depressed in 2019.
The Bank of Canada held rates steady at it’s March 6th meeting. They’ve shown an inability to make timely decisions and it’s not a surprise that they kept rates steady, however I feel it’s a mistake to not start cutting. The pendulum is swinging too far (once again) by overly depressing the economy and suppressing housing market activity, which could require more rapid rate cuts that will reignite all the excitement in the real estate market that they’ve been trying to extinguish. Not to mention all the pent up demand from people waiting on the sidelines and all the projects that haven’t gotten off the ground because they’re not viable at these interest rates. The boom and bust cycle is being perpetuated and isn’t doing any favours for beginning to address the underlying imbalance of supply and demand in Canada. With that said, inflation remains elevated in the US and the Bank of Canada has to be careful not to devalue the CAD by diverging too much on monetary policy. It’s always a balance, but I still think they should have done a surprise rate cut.
There’s some fantastic product on the market right now! If you’re thinking of buying in Squamish or Whistler, try to resist the media headlines and the urge to follow the masses, it’s a good time to negotiate and invest in either of these markets, if you have the ability. Although it won’t feel like it at the time, making countercyclical decisions is a luxury that often sets one up to do very well in the next cycle.
~Lindsay