As the latest real estate statistics have rolled in for January 2021, we decided to take a look at how the market behaved over 2020, and what assertions we can make for the rest of 2021.
The city of Squamish was no different from any other as we felt the impact of the pandemic across our communities. We put a brave face on and in many ways the spirit of the community felt stronger during these difficulties than ever before. Innovative business practices, unwavering local support and collective respect of each other’s wellbeing were evident throughout the year.
For us, we observed the real estate market shift and adapt, as we continued to make people’s dreams come true in Squamish. The market did not take too long to adapt to the new ways of doing things and this effort was certainly enabled by the great work of the Real Estate Boards, Worksafe Councils and Health Canada who ensured we were able to support the needs of the population.
By operating safely throughout the pandemic and finding innovative ways to showcase homes and reach out to buyers, we were able to respond to a few key emerging trends:
- Changing human behaviours that began to prioritise lifestyle based purchasing (and oh boy do we offer a great lifestyle in Squamish)
- The lack of a ‘spring season’ accumulated demand amongst would-be buyers, this pent-up demand exploded over summer
- Record low mortgage interest rates made buying, refinancing and upgrading accessible and attractive
- The higher wage jobs market actually grew in 2020. This market includes the home-buying cohort.
In this article, we take a look back at a crazy year and give you an insight into what happened. We hope this arms you with a greater understanding and confidence in your buying and selling decisions and no matter what, we are always here to help you navigate these life-changing decisions. Click the button below to book an introductory appointment with Kristen Dillon, Squamish’s top Real Estate Agent, who loves grabbing a coffee with a friendly face.
How many properties sold in Squamish throughout 2020?
This is as good a place to start as any other! The number of property sales in Squamish can tell us a lot about the market, particularly the monthly trend which, unsurprisingly, had a big dip and an even bigger rise. Still, It is important to take these sales into a wider context. Squamish was always a growing community with a really exciting future, we have seen the pandemic increase the desirability of the area. Furthermore, the number of sales can be driven by a low, or high, number of people wanting to leave, as well as the number of residential properties under construction at that time. To this end, read our up to date list of new construction homes by clicking this link. 
Stats courtesy of the REBGV
We had a pretty slow start to the real estate market in 2020. In fact, December 2020 figures were 104% higher than December 2019. Coming into the start of the year when the pandemic wasn’t yet touching our communities, the Christmas hangover was slowly being shaken off.
The obvious dip in sales of all property types in March and April didn’t take very long to correct itself. Interestingly, when you compare the Squamish market to somewhere such as Burnaby, Condo and Townhouse sales took off sharply. We saw many new people arriving in Squamish in the summer as behaviours and needs have shifted and people were wanting to live in more spacious surroundings. For more densely populated areas, such as Greater Vancouver, detached homes saw a stronger initial response and condos sales were slow.
By the end of the year, 260 detached homes, 182 condos and 190 townhouses had been sold.
Determining if 2020 was a buyer’s or seller’s market.
Firstly, it is probably most useful if we quickly clear the way that we determine whether the market is in favour of buyers or sellers.
When does the real estate market favour buyers?
When there is more housing inventory (properties on the market), than there are available buyers, we can say that the market is in favour of buyers. When looking at real estate data, this happens when the sales-to-active listing ratio is below 12%. In these conditions, buyers have longer to refine their search, more options to choose from, and increased bargaining power.
When does the real estate market favour sellers?
Conversely, a seller’s market is determined to be one which has lower inventory (homes) than available buyers on the market. When the sales-to-active listing ratio is above 20%, we are in a seller’s market. With less choice available, buyers compete with one another for their dream property and are often faced with higher prices and less leverage.
A balanced market fits in the middle.
The middle ground that favours both parties occurs when the sales-to-active listing ratio sits between 12% and 20%.
Was Squamish a Buyer’s or Seller’s market in 2020?
Stats courtesy of the REBGV
Since July 2018, the real estate market has been relatively balanced with all property types fluctuating between buyer and seller advantage. Townhouses spent the most time in the area deemed most favourable to sellers.
Over 2020, Squamish started off relatively balanced, but as soon as the pandemic took hold and we had been confined to close quarters for a couple of months, all property types experienced a high sales-to-active listing ratio.
This was partly due to the low level of inventory in the Squamish market. People just didn’t want to leave our wonderful area! Many people took the opportunity of low-interest rates to upgrade their size and style and there were many out-of-area buyers looking for something new in our beautiful setting.
Starting 2021 in a Seller’s market.
As of February 1st 2021, we are still in a seller’s market and should be for a while longer. If you want to take advantage of this opportunity to sell your home in record time and for record money, Kristen Dillon would love to help.
What were the average property prices in Squamish throughout 2020?
One thing is for sure, we love data, the real estate boards do a wonderful job of tracking it. Interpreting it can be tricky, so we’re here to help you make sense of it.
The average price of a property can vary greatly depending on the type of neighbourhood, the volume and rate of sale, and many other factors. That’s why the MLS® created the HPI Benchmark Price Index which is the industry preferred measurement for average prices. This index excludes properties in the extreme high and extreme low ends of the scale. Using this pricing methodology, we’ve put together the following trend graph of Squamish property prices.
Stats courtesy of the REBGV
All prices saw a slight fluctuation throughout the year with Townhouses and Detached Family Homes experiencing the most growth. Compared to December 2019;
- Condos had lost 1.5% in value
- Townhouses had gained 9.7% in value
- Detached homes had gained 6.9% in value
How does this compare to previous years?
Strong growth across all property types in Squamish really kicked up a gear from 2014. At the start of 2015, the average family home cost $550,000 compared to $1,020,400 today. It is a similar story for townhouses and condos, both have almost doubled in value over the last five years. But can the market sustain this growth?
Future trends in the Squamish real estate market.
Even with a slight slowdown in sales in January, which can be expected this time of year, we are still very much in a seller’s market across all property types. Desirability will only increase, let’s hope the number of New Construction Developments can keep up with the pace of demand.
We must add the disclaimer that we cannot predict the future (despite our best efforts and desires). How convenient that would be!
We have already written about the top reasons to invest in the Squamish real estate market, view the full article here. Here we cover the continued growth of the population and major infrastructure projects that are on the way, all of these add up to a strong foundation for the future.
Add to this an emerging cohort of millennial homebuyers, a diverse range of communities and housing styles, and property values that are still affordable (yet continuing to rise) and we are certain the Squamish real estate market will continue to prosper throughout 2021.
The only question left is how do you play your part in this? If you’re looking to buy or sell, chat to long time Squamish resident and real estate rock-star, Kristen Dillon. Kristen knows the ins and outs of this amazing place and she’s here to help you make the most of it.
