May 2008 Newsletter

Welcome to Squamish Rocks Realtors E-News letter
New Foundations

There are three factors that should be analyzed when determining the condition of the real estate market: the number of sales transactions, the direction prices are mov- ing, and what the inventory levels are. When we talk about inventory levels it will be in relationship of total number of listings as compared to the total number of sales. This is referred to as a listing to sales ratio.

Firstly, let's look at the number of sales in the first quarter compared to the same period last year. The total number of sales January 1 to March 31 last year was 142; this year it was 120. The type of housing that saw the biggest decrease was single- family detached with a 26% drop - 59 sales in 2007 compared to 44 sales in 2008. The attached and apartment sales were down slightly from 2007 levels.

Secondly, what have prices done in the first quarter of the year? Single-family detached were up by 6%, townhomes and apartments were each up by 9% compared to the 2007 prices. While the median selling price for single-family homes was up by 6% it is still below $500,000 at $476,000.

Now for the third part of the equation - inventory, and what is it doing? Unlike last year when inventory levels remained low, this year has seen a significant increase in listings for both detached and attached housing, while the number of apartments on the market has dropped compared to last year. The total number of detached listings for the first quarter was 120, and the sale to listing ratio was 37%. Last year, detached listings were 76 and the ratio was 78%. For attached this year, we listed 69 and listing to sale ratio was 52%; last year the ratio was 88% with a total of 43 listings. Apartments differed from the other two housing types in that the inven- tory was down - only 42 listings with a 95% listing to sale ratio; last year the ratio was 66% with 68 listed.

Based on the inventory available and the listing to sale ratio, this would suggest that prices will become stable and there should be little increase in current prices. prices moving forward for the buyers.The market appears to remain price-sensitive as apart- ments, with a median selling price was $277,650, has a lessening inventory and the highest listing to sale ratio at 95%. The overall health of the real estate market remains strong but inventory levels will determine urgency and sale.

Community News

The District of Squamish gave unanimous support to a rezoning bylaw to allow the Paradise Valley Center for Change. The private treatment center has an expected capacity of 48 patients - a number several residents felt was too dense for their rural community. The offer to provide 80 patients weeks a year free proved to be too important to refuse.

The District to start Vancouver commuter Survey, trying to find out how much community support for the possible commuter service. Before investing $8,000 into a professionally administered survey they will be asking questions through the local paper to fine tune the questions.

Home Buying Tips

How to determine what mortgage you can afford;

The sum of all your current loan payments; car, credit card, line of credit, personal, plus your mortgage should not exceed 40 per cent of your gross income. In addition, mortgage payments and property taxes should not be more than 30 per cent of your gross income.

A broker or financial institution, will determine the mortgage amount you can carry by calculating your debt-service ratio.