When buyers start looking at condos and townhouses in Squamish, one of the first things they compare is the monthly strata fee.

It’s understandable. If one townhouse has a strata fee of $325 per month and another similar one is $575 per month, it seems obvious that the lower fee is the better value.

In reality, that’s often not the case.

After more than 25 years helping buyers and sellers in Squamish, I’ve learned that one of the biggest mistakes people make is assuming lower strata fees mean lower ownership costs. In many cases, they simply mean you’re paying less today and potentially much more tomorrow.

First, What Exactly Are Strata Fees?

If you’re new to buying a condo or townhouse, here’s a quick explanation.

Most attached homes in British Columbia belong to a strata corporation. Every owner contributes a monthly strata fee (sometimes called a maintenance fee) that helps cover the ongoing costs of operating and maintaining the property.

These fees typically pay for things such as:

• Building insurance (not your personal contents insurance)

• Landscaping

• Snow removal

• Exterior maintenance

• Roofing and siding repairs

• Common area cleaning and lighting

• Garbage and recycling services

• Professional strata management

• Contributions to the Contingency Reserve Fund

Some developments also include amenities such as gyms, clubhouses, elevators, guest suites or amenity buildings, which naturally increase operating costs.

Every strata is different, but the principle is the same: everyone contributes toward maintaining the property over the long term.

Here’s What Most Buyers Don’t Realize

Regardless of whether a strata charges low fees or high fees, it costs roughly the same amount to maintain a similar building.

Yes, there are differences.

Older buildings generally require more maintenance than newer ones. The type of exterior cladding, roofing materials, elevators, underground parking and amenities all affect operating costs.

But when you’re comparing similar properties in Squamish, there is usually a fairly predictable range that strata fees eventually settle into.

Based on what I’ve seen across our local market, a reasonable expectation is approximately:

• One-bedroom condo: around $380 to $390 per month

• Two-bedroom condo: around $470 to $480 per month

• Three-bedroom townhouse: around $550 to $600 per month

Another way to estimate costs is by square footage.

In Squamish, many developments tend to fall roughly within these ranges:

• Condos: approximately $0.50 to $0.55 per square foot per month

• Townhouses: approximately $0.30 to $0.35 per square foot per month

These aren’t hard rules, but they’re useful benchmarks when evaluating a property.

Low Strata Fees Can Be Misleading

Imagine you’re buying a newer three-bedroom townhouse.

The monthly strata fee is only $250.

It feels like a bargain.

But ask yourself this:

Is it really costing only $250 per month to maintain the roads, landscaping, insurance, roofing, siding, management, reserve fund and everything else?

Probably not.

More often than not, those lower fees simply mean the strata hasn’t built up enough money yet.

Understanding the Contingency Reserve Fund

Part of every strata fee goes into what’s called the Contingency Reserve Fund (CRF).

Think of it as the building’s long-term savings account.

It’s there to pay for major repairs and replacements over time, including things like:

• Roof replacement

• Exterior repairs

• Siding replacement

• Common area upgrades

• Unexpected major maintenance

If the reserve fund has enough money, these projects can often be completed without asking owners for additional funds.

But if the reserve fund falls short, owners receive what’s known as a special levy.

The Surprise Nobody Wants

Let’s say your strata has only $150,000 saved.

Then the roof needs replacing and the project costs $400,000.

That extra $250,000 has to come from somewhere.

The result?

Every owner might suddenly receive a bill for several thousand dollars.

I’ve seen special levies ranging from a couple thousand dollars to well over $10,000 per owner depending on the project.

Nobody enjoys getting that letter in the mail.

My Recommendation

This is the advice I give many of my own clients.

Don’t budget based on what today’s strata fee happens to be.

Budget based on what the property is likely to cost over the long term.

For example:

If you’re buying a three-bedroom townhouse with a $250 monthly strata fee, but similar properties generally average around $575 per month, continue budgeting as though your monthly cost is $575.

Pay the actual $250 to the strata.

Then automatically transfer the remaining $325 into your own savings account every month.

Now you’ve created your own reserve fund.

If a $6,000 special levy arrives two or three years later, you’ll likely have the money waiting.

If nothing happens?

Fantastic.

You now have a healthy savings account that can go toward your next home, renovations, moving costs or simply increasing your financial security.

It’s a win either way.

What If Your Strata Fees Are Already High?

Higher strata fees aren’t necessarily bad.

In many cases, they’re a sign that the strata is properly funding maintenance and planning ahead.

I’d still recommend putting aside another 8% to 10% of your monthly strata payment into a dedicated home maintenance savings account.

You may never need it.

But if something unexpected happens, you’ll be prepared instead of scrambling.

The Bottom Line

One of the biggest financial mistakes buyers make is choosing a property simply because the monthly strata fee is lower.

A lower fee doesn’t automatically mean lower ownership costs.

In many cases, it simply delays those costs until later.

Instead of focusing on today’s monthly payment, think about what the property is likely to cost over the years you own it.

Budget for the long term.

Save the difference if your fees are unusually low.

Keep a small maintenance reserve even if your fees are already high.

Doing that won’t just protect you from unpleasant surprises. It will make homeownership less stressful, more predictable and far easier to manage financially.

That’s one of the smartest habits any strata owner can develop.

Pricing for Tomorrow's Market, Not Yesterday's

Why sellers need a different strategy when the market begins to soften

Every real estate market has its own personality.

Sometimes buyers compete aggressively. Homes sell in days, multiple offers are common, and pricing slightly below market value can produce exceptional results.

Other times, the market quietly changes.

Not overnight.

Not dramatically.

But enough that the strategies which worked six months ago simply don't work anymore.

From what I'm seeing on the ground in Squamish today, I believe we've entered one of those periods.

In over 25 years of selling real estate, I've only seen this type of market transition three times.

And while history never repeats itself perfectly, it often rhymes.

The Most Difficult Markets Aren't Falling Markets...

They're the Markets That Stop Moving

One of the biggest misconceptions about a softening market is that prices immediately start falling.

That's rarely what happens.

Instead, something much more subtle takes place.

Buyers become cautious.

Sellers continue pricing their homes based on yesterday's market.

The result?

Very few properties actually sell.

When sales volume drops, something interesting happens.

It becomes incredibly difficult for everyone, buyers, sellers and even REALTORS®, to determine what market value actually is.

The market hasn't stopped because homes suddenly aren't worth anything.

It's stopped because buyers and sellers haven't yet agreed on today's value.

Why This Matters

When very few homes are selling, buyers gain patience.

Instead of feeling pressure to make quick decisions, they begin waiting.

They know another property will likely come along.

They know motivated sellers may negotiate.

They know they have options.

That's a very different environment from the one we've experienced over much of the past several years.

What History Has Taught Me

Every market cycle is different, but I've now experienced this type of transition three separate times during my career.

In each case, the pattern looked remarkably similar.

The market slowed.

Prices softened.

Activity stabilized.

Sometimes prices softened again before eventually finding their footing.

In those previous cycles, prices ultimately declined by roughly seven percent before the market established a new equilibrium.

Does that mean we'll see exactly the same thing this time?

Absolutely not.

Every cycle has different economic conditions.

But it does remind us that markets rarely move in a straight line.

They pause.

They adjust.

Then they eventually find balance again.

The Biggest Mistake Sellers Make

Most sellers think they're pricing for today's market.

In reality, they're often pricing for yesterday's.

That's an important distinction.

In a rising market, pricing at market value is usually enough.

By the time buyers negotiate, market values may already have moved higher.

In a softening market, the opposite can happen.

If the market is gradually declining while your home sits unsold, your asking price effectively becomes more expensive every week.

You're not standing still.

You're slowly becoming overpriced.

Eventually many sellers reduce their price.

Then reduce it again.

In real estate we often call this chasing the market.

And it's one of the most expensive mistakes a seller can make.

Price Ahead of the Market, Not Behind It

This is why my advice to sellers changes during markets like today's.

If your goal is to sell within the next six months, your pricing strategy matters more than ever.

Rather than testing the market with an optimistic price, it often makes more sense to price sharply from day one.

That doesn't mean giving your home away.

It means recognizing where the market is heading rather than where it has been.

Ironically, pricing slightly below where competing listings sit can actually produce a stronger result.

When buyers recognize value, they show up.

More showings create more interest.

More interest creates competition.

And competition is still the best way to discover true market value.

I've seen many sellers receive a better outcome by pricing strategically than by reducing their price several times over a period of months.

The Economic Picture Adds Some Uncertainty

Real estate doesn't exist in isolation.

Interest rates, inflation, employment, consumer confidence and global economic conditions all influence buyer behaviour.

Today, central banks continue to balance inflation against economic growth. While the Bank of Canada recently held its policy rate steady, it also acknowledged that uncertainty remains high. In the United States, the Federal Reserve also held rates steady, although some policymakers argued that inflation risks could require tighter policy in the future.

No one knows exactly how these factors will affect housing over the next six to twelve months.

But uncertainty alone is often enough to make buyers more selective.

Looking Ahead to the Fall Market

Seasonality matters too.

As we move from late summer into fall, the Squamish market typically becomes less active than the spring market.

There are still successful sales.

There are still motivated buyers.

But the pace often slows.

If that seasonal slowdown overlaps with softer pricing, it can create the impression that nothing is happening.

In reality, transactions are still taking place.

They're just happening at prices that reflect today's market rather than yesterday's expectations.

We may not have a much clearer picture until the spring inventory begins arriving in February, when more sales provide stronger evidence of where the market is heading.

The Opportunity Hidden Inside a Soft Market

Soft markets aren't bad.

They're simply different.

For buyers, they often provide more choice, more negotiating power and less pressure.

For sellers, they reward preparation, realistic expectations and smart pricing.

The sellers who understand the market they're in are usually the ones who achieve the best results.

My Take

The goal isn't to predict the future perfectly.

No one can.

The goal is to recognize the market that's in front of us and adjust accordingly.

If the market strengthens, fantastic.

If it softens a little further, we'll adapt.

That's what good real estate advice should do.

It shouldn't be based on hope.

It should be based on experience, evidence and a willingness to change strategies as the market changes.

Today, I believe that means pricing for tomorrow's market, not yesterday's.

Because in a softening market, the first price is often the most important one you'll ever choose.

If there's one thing I've noticed recently in the Squamish real estate market, it's this:

Not all price ranges are behaving the same.

In fact, some of the strongest competition we're seeing isn't necessarily for the cheapest homes. Instead, it's for detached houses with legal or usable rental suites.

At first glance, that seems a little odd.

A buyer might be comparing a nearly new townhouse for around $900,000 to $1.2 million with a detached home priced around $1.5 million. That's a significant jump in price, often between $300,000 and $600,000.

Yet time and again, it's the detached home with the suite that's attracting the greatest interest.

So why?

I don't think the answer is as simple as "buyers want rental income."

The Numbers Don't Always Add Up

Many buyers tell themselves that the rental suite will help pay the mortgage.

That's certainly true.

But when you actually run the numbers, the additional rent often doesn't fully offset the larger mortgage required to purchase the more expensive home.

For example:

• A buyer spends an extra $400,000 to purchase a detached home instead of a townhouse.

• The suite generates monthly rental income.

• However, depending on mortgage rates, taxes, insurance, and maintenance, that rental income may not fully cover the additional cost of owning the more expensive property.

If your only goal was reducing monthly housing costs, the townhouse can often be the more economical choice.

Which raises an interesting question:

Why are so many buyers still choosing the detached home?

I Think Buyers Are Looking Beyond Today's Mortgage Payment

After talking with buyers over the past several months, I think the appeal of a suite goes well beyond simple math.

Many buyers aren't purchasing the home they need today.

They're buying the home they'll still want in ten or twenty years.

A detached home with a suite offers flexibility that a townhouse simply can't.

For example:

• A young couple might live in the suite while renting out the main house to reduce costs early on.

• Later, they can move upstairs as their family grows.

• Years down the road, aging parents may move into the suite, allowing multiple generations to live on one property while maintaining privacy.

• Adult children could use the space before eventually moving out.

• The suite provides a source of income if financial circumstances change.

In other words, buyers may be purchasing options rather than simply purchasing square footage.

That flexibility has real value, even if it's difficult to calculate on a spreadsheet.

Squamish's Growth Could Be Part of the Story

There's another factor that may be influencing buyer behaviour.

Squamish continues to evolve, with planning policies increasingly encouraging higher-density housing in appropriate areas. Over time, land that supports additional housing options may become more valuable than land that is limited to a single use. While no one can predict future property values with certainty, many buyers appear to believe that detached properties with additional flexibility will hold their appeal as the community grows.

That doesn't guarantee higher appreciation.

But it may explain why detached homes continue to attract such strong demand despite their higher purchase price.

Buyers May Be Thinking Longer Term Than We Realize

It's easy to assume buyers are making emotional decisions.

In reality, they may simply be taking a much longer view.

They're asking questions like:

• What happens if mortgage rates change?

• What if my parents need a place to live?

• What if my kids stay at home longer than expected?

• What if I lose my job and need additional income?

• What if I eventually want to create wealth through real estate?

A suite provides answers to many of those questions.

That flexibility has become increasingly valuable in today's uncertain economic environment.

What This Means for Sellers

If you own a detached home with a suite, particularly in the approximately $1.4 million to $1.6 million price range, you're currently competing in one of the strongest segments of the Squamish market.

That doesn't mean pricing no longer matters.

It absolutely does.

However, buyers appear willing to pay a premium for properties that offer flexibility, future income potential, and room for changing family needs.

The key is making sure your marketing highlights those benefits, not just the number of bedrooms or the rental income.

What This Means for Buyers

If you're shopping for a home, it's worth asking yourself one important question:

Are you buying for the next three years, or the next twenty?

Sometimes the best financial decision isn't the property with the lowest monthly payment.

Sometimes it's the property that gives your family the greatest number of options as life changes.

That doesn't mean every home with a suite is worth paying more for. The numbers still matter, and every property should be evaluated on its own merits.

But the current market suggests many buyers are placing a premium on flexibility, and that may be one of the defining trends in Squamish real estate right now.

My Take

One of the things I enjoy most about real estate is that buyers continually challenge assumptions.

On paper, a townhouse often appears to offer better monthly value than a detached home with a suite.

Yet the market keeps telling a different story.

Maybe buyers are valuing flexibility more than immediate cash flow. Maybe they're planning for multi-generational living. Maybe they're thinking about the long-term scarcity of detached land in Squamish.

Or maybe it's a combination of all three.

Whatever the reason, it's one of the clearest trends I'm seeing on the ground today, and it's a reminder that real estate decisions are rarely based on spreadsheets alone.

Frequently Asked Questions

Do homes with suites sell faster in Squamish?

In the current market, many detached homes with suites are attracting significantly more interest than similarly priced townhouses or duplexes. The exact outcome depends on pricing, location, condition, and the quality of the suite.

Is a rental suite always worth paying more for?

Not necessarily. Buyers should compare the additional mortgage costs with the rental income, maintenance expenses, taxes, and their long-term goals.

Why are buyers willing to pay more for detached homes?

Many buyers value flexibility. A suite can provide rental income, accommodate family members, or adapt to changing life circumstances over many years.

In the past 6 months, there has been a major shift in Real Estate in Squamish.  First, when the interest rates rose slightly, there was a calming effect and people didn't feel the need to pay over the asking price.  The volume of transactions in the Squamish Real Estate market started to fall.  Everyone was wondering if the next rate hike would have an impact on prices.  I eluded to this fact in my market report sent to my clients in May, that a 1% rate hike would have to potential to initiate falling prices.  I was right about that.  The Squamish Real Estate market hasn't looked back since. Prices really stalled and have now started to pull back.  With rising interest rates, this has created a dilemma for buyers and most are sitting on the sidelines waiting.   

If you are one of the buyers sitting on the sidelines, make sure you have a long rate hold in place. This is the only way for you to really take advantage of a falling market.  If you do not have a rate hold, then as prices drop and interest rates rise, your payments will remain very close to what they were if you had bought earlier.  The market has a tendency to do this.  Keep this in mind when you are looking at properties.  it all balances out in the end.  The best thing you can do is to find the "right" property for you....one that you are happy with.

As a seller, if you are not moving into another home right away, then you need to sell as soon as possible as prices will continue to drop for the foreseeable future.  Keep this in mind.  The downtrend in prices could last as long as 5 years depending on how quickly prices adjust to the rate increases and depending on how quickly the BoC raises rates.

For more information about the right path, reach out, and I will answer any questions you have.