Let’s talk about Q2 2024 in the Whistler and Pemberton real estate markets.
Inventory levels continued to increase in both Whistler and Pemberton throughout the quarter, a function of both typical spring market activity and capital gains changes that came into effect towards the end of the quarter. April was an active month for sales in both the Whistler and Pemberton markets, but May and June were slower as the highly anticipated interest rate cut at the start of June did nothing to spur market activity.
Whistler
Whistler saw a total of 136* sales in the second quarter, with roughly half of these sales occurring in April. Overall, this is a 16% increase compared to the first quarter, but a 18% decrease from the same time last year. Although sales volume was down throughout the quarter, the average sales price increased each month as a result of the mix of product sold. The luxury segment, while slower than the first quarter, remained active in the second quarter with 10 sales over $4 million. The origins of Whistler’s buyers in the first half of the year were typical, with 83% of buyers coming from British Columbia, 2% from the rest of Canada, 8% from the United States, and 5% from other countries. Property listings spiked, likely due to capital gains changes, with 315 new units coming on the market throughout the quarter. Total market inventory now stands at 346 units, 50% above inventory at the same time last year and 23% above the five-year average. Overall, market conditions in Whistler were balanced in the second quarter, leaning slightly in favor of buyers.
Pemberton
There were 31* sales in Pemberton in the second quarter, nearly doubling the number of sales in the typically slow first quarter. Year to date, there have been 17 fewer sales compared to the end of Q2 2023. Median sales prices are down across all categories, likely as the market remains sensitive to mortgage rates. Inventory increased by approximately 40% from April to June and is now at 94 homes, the highest level in Pemberton since August 2020. There was one luxury property sale over $2 million in Pemberton in the second quarter compared to two in the first quarter. 37% of Pemberton buyers were from Whistler, 33% from Pemberton, 16% from the Lower Mainland, and 8% from the rest of British Columbia. Overall, the Pemberton market tilted in favor of buyers throughout the second quarter.
Looking ahead, the Whistler and Pemberton markets are traditionally slow in the summer but will pick up steam in the late summer and early fall as buyers look for properties for the snowy season. We may also see some inventory correction as deadlines for selling to avoid new capital gains increases pass and unsuccessful sellers may take their properties off the market.
Economists expect the Bank of Canada to keep interest rates on hold in its end-of-July announcement and implement further rate cuts this fall, further entrenching the historical summer and fall market patterns. There has yet to be any momentum from the initial 0.25% rate cut announced in early June. While in line with historical rates, they are still significantly higher than what borrowers are accustomed to, and overall economic uncertainty remains significant, fueled in part by the volatility in the US markets due to the November election. As a result, many buyers and sellers are in “wait and see mode,” but there are opportunities from both perspectives for those willing to take action.
*Excluding parking
market share
Whistler Real Estate agents represented 39% of the Whistler and Pemberton market in the first half of 2024, helping their clients achieve great results.
Regulatory Notices
Prohibition of foreign buyers
As previously mentioned, the foreign buyer ban does not apply to the Whistler or Pemberton markets, nor does the foreign buyer tax apply.
New state short-term rental laws
In May 2024, the BC Government introduced the Short-Term Housing Rentals Act. Whistler short-term rentals are not affected by the new regulations, but there are rules that those who rent out properties for this purpose must follow (i.e. obtain and display a business license, update their license information on their listings on websites like Airbnb, etc.). The Village of Pemberton has chosen to follow the new provincial laws regarding short-term rentals. Contact your local Whistler Real Estate agent to find out how this may affect your property.
Underutilized Housing Tax
The Underutilized Housing Tax (UHT) is a 1% annual tax levied on non-resident, non-Canadian owned residential property that is deemed vacant or underutilized by the Canada Revenue Agency (CRA). However, there may be cases where tax or reporting obligations apply to Canadian citizens or residents, so it is important to know whether you are an exempt or affected owner based on your specific situation. We recommend consulting with your accountant to determine how your Whistler or Pemberton property may be affected.
Residential Tenancies Act amendments
Significant changes are coming to residential tenancies law on 18 July 2024 that anyone who owns a rental property or is considering buying or selling a rental property should be aware of. The main changes are:
Landlords will be required to use a new web portal to generate tenancy termination notices for personal or manager use. Notice periods will be extended from two months to four months. Individuals moving into a property will be required to reside in the property for at least 12 months.
If you plan to proceed with a transaction involving tenant-occupied real estate, we strongly encourage you to seek legal advice to effectively understand these new regulations, to comply with the new rules and ensure that you understand the rights and obligations of the parties involved. More information on these changes is available on the BC Government website.
Small-scale housing complex
The provincial government has introduced new housing legislation that updates zoning rules to allow for more small multi-family units (SSMUs) with the goal of building more housing faster. In most municipalities with populations over 5,000, these changes will allow lots currently zoned as single-family or two-family to have three or four homes built, depending on the size of the lot, but may be affected by zoning code provisions. To learn more about Whistler or Pemberton real estate or how this may affect the property you are interested in, contact a local Whistler real estate agent.