Home prices held steady in Squamish and Sunshine Coast this year while they fell in other Greater Vancouver communities after interest rate hikes, according to a report by Remax.
The average detached home price remained steady at $1.6 million in Squamish in both quarters of 2022, the Remax/Canada 2022 Hot Pocket Communities Report report says.
In the Fraser Valley, home prices fell from a low of just over three per cent in Langley to a high of close to 13 per cent in Delta – North between the first and second quarter of this year.
“Buyer sentiment changed virtually overnight as growing geopolitical concerns and spiralling inflation destabilized global markets, leaving the Bank of Canada little option but to raise interest rates,” says Christopher Alexander, President, RE/MAX Canada. “Those fast and furious incremental increases placed downward pressure on housing sales and prices, improving affordability on one hand, but eroding it on the other.”
While West Vancouver and Vancouver West/Howe Sound saw moderate increases, prices dropped by over 16 per cent in Whistler and Pemberton area ($3,020,000 vs. $3,622,500).
“While we have seen some easing in prices, the sky is nowhere near falling,” explains Elton Ash, Executive Vice President, RE/MAX Canada. “In fact, there is relative stability in terms of market conditions, so buyers shouldn’t expect big bargains. Sales-to-active listings remain squarely in balanced territory overall and even tight in some areas. In Vancouver, for example, supply was lower this June than last in 50 per cent of markets and sales are down accordingly. This trend will likely keep prices fairly stable moving forward.”
RE/MAX REALTORS® also noted a reversal in pandemic trends over the past six months, as work from home situations change and buyers rethink the exodus to suburban and rural areas. Greater Vancouver experienced an increase in sales in 31 per cent of markets, including Island-Gulf, North Vancouver, Squamish, Sunshine Coast and Whistler/Pemberton.