January 2009 Newsletter

Welcome to Squamish Rocks Realtors E-News letter
New Foundations

After almost 6 years of a record-breaking real estate market cycle, this was much longer than in recent memory, ended in 2008 amidst global economic challenges. As sales came to an abrupt halt it has caught most sellers off guard and impacted buyer confidence. It might serve to assist in price stabilization and affordability in some areas of the market.

The first quarter of 2008 was not far off the sales volume of 2007 and in fact prices were still continuing to rise. The change began to occur in April with prices rising along with the number of listings. Buyers were taking time to make decisions on purchasing, while sellers had not realized that change was in the air. By the end of the summer as the economic news worsened listings inventory was at the highest level in almost 7 years and prices while staying stable had not begun to fall. The results were that sales in most of the market segments of Squamish fell on average 45% compared to the following year. As the New Year begins there is the realization that prices will need to come in line with the new economy which in most cases is lower than 2008 and perhaps moving back to the prices of 2006. Interest rates continue to move downward and inflation is in check so buyers are able to borrow money at lower levels than 2008 or 2007. Any real estate market is driven by the willingness of the seller and the buyer to come to a meeting of the minds. Only as we move forward into 2009 will we see if this will be the case.

As for the market, it has not been one of the better years but Dave Watt the President of the Real Estate Board of Greater Vancouver put it very well in an article in the Vancouver Sun earlier this month. He said "The Real Estate Board of Greater Vancouver has existed for nearly 90 years and witnessed numerous market cycles. Sales increase and decrease. Prices go up and down. Historically, the values at the peak of the next cycle inevitably surpass the ones before"

CMHC has numerous free publications for the general public - one of which is of particular interest:
http://www.cmhc-schl.gc.ca/en/co/buho/hostst/index.cfm