Squamish Newsletter

SQUAMISH 2007 REAL ESTATE REVIEW

A Review of 2007's Market Activity

2007 was yet another exceptional year for the Real Estate market in Squamish and forecasts are positive for 2008.

Apartment sales continue to lead the market activity in both volume and price. By the close of 2007 there was a 300% increase in the number of sales, as compared to the same period in 2006, and prices were up by 22%. A contributing factor to this was, for the first time, the development community brought this type of housing product into the Squamish market. These projects were also built in unique locations and offered a wide variety of floor plans and finishings. Another factor was the affordability of the product, on average, new apartments in Squamish sold for approximately $150 less per square foot than in the lower Mainland. This enabled the new Squamish buyer not only to obtain a new lifestyle but buy their own apartment at an affordable and attractive price.

Single family homes sold at the same pace as last year but prices continued to rise. The median selling price for a home at the end of 2006 was $391,000 and at the end of November 2007 it had reached $597,500 - an increase of 35%. This dramatic figure does not reflect actual price increases rather that Squamish started to see more sales in homes priced over $600,000 - especially in the first of half of 2007 which saw more sales than the total for 2006.

This trend is expected to continue as buyers from the lower mainland still feel there is value in the pricing. With first time buyers coming into the market and purchasing the less expensive homes, this allows local purchasers to move up. The inventory still remains on the lower side which also has a tendency to keep pressure on prices in an upward direction.

Townhomes, like houses, saw an increase in price by 23%. Sales of pre-owned townhomes remained strong because the supply of new product remained low. Price on new town houses were in the mid $400's, the high prices reflecting higher construction costs, which resulted in keeping prices on pre-owned units strong as well.

Overall, the Squamish market continues to remain strong and active. Prices are expected to increase in 2008 but not at a rate seen in the past. An increase of 5-8% is expected over the next year, but all indicators are that confidence in the Squamish market is still at an all time high.

Information provided by Patricia Place - Managing Broker RE/MAX Sea to Sky Real Estate Squamish

E O & E: Unit numbers are courtesy of the Multiple Listing System (MLS) and are deemed to be correct but are not guaranteed correct. Projected unit sales for 2008 are estimates only and should not be relied upon to make any real estate related decisions as economic conditions may change at any time and in turn may affect sales volume and market value either positively or negatively. Please consult with your RE/MAX Sea to Sky Real Estate Squamish Sales Representative for up to date sales information.