July 19, 2022
Simon Hudson PREC
In the past 6 months, there has been a major shift in Real Estate in Squamish. First, when the interest rates rose slightly, there was a calming effect and people didn't feel the need to pay over the asking price. The volume of transactions in the Squamish Real Estate market started to fall. Everyone was wondering if the next rate hike would have an impact on prices. I eluded to this fact in my market report sent to my clients in May, that a 1% rate hike would have to potential to initiate falling prices. I was right about that. The Squamish Real Estate market hasn't looked back since. Prices really stalled and have now started to pull back. With rising interest rates, this has created a dilemma for buyers and most are sitting on the sidelines waiting.
If you are one of the buyers sitting on the sidelines, make sure you have a long rate hold in place. This is the only way for you to really take advantage of a falling market. If you do not have a rate hold, then as prices drop and interest rates rise, your payments will remain very close to what they were if you had bought earlier. The market has a tendency to do this. Keep this in mind when you are looking at properties. it all balances out in the end. The best thing you can do is to find the "right" property for you....one that you are happy with.
As a seller, if you are not moving into another home right away, then you need to sell as soon as possible as prices will continue to drop for the foreseeable future. Keep this in mind. The downtrend in prices could last as long as 5 years depending on how quickly prices adjust to the rate increases and depending on how quickly the BoC raises rates.
For more information about the right path, reach out, and I will answer any questions you have.