Real Estate Market Report – Q2 2024
Let’s talk about the second quarter of 2024 in the Whistler and Pemberton real estate markets.
Over the course of the quarter, inventory levels continued to rise in both Whistler and Pemberton, which came as a function of both typical spring market activity and the capital gains changes that came into effect towards the end of the quarter. April was a busy month for sales in both the Whistler and Pemberton markets, which was followed by a slower May and June as the much-anticipated interest rate decrease at the beginning of June didn’t move the needle in terms of generating market activity.
Whistler
In Whistler, there were a total of 136* sales in Q2, with approximately half of these sales coming in the month of April. Overall, this is a 16% increase vs Q1, but down 18% from the same period last year. Despite sales volume declining over the course of the quarter, the median sale price increased each month as a result of the product mix sold. The luxury segment, although slower than Q1, remained active with 10 sales over $4M in Q2. Buyer’s origin for the first half of the year in Whistler was typical, with 83% of buyers coming from British Columbia, 2% from the rest of Canada, 8% from the US and 5% from other international locations. There was a listing boom likely due to the capital gains change, with 315 new units coming to market throughout the quarter. Total market inventory currently sits at 346 units, 50% above inventory at this time last year and 23% above the 5-year average. Overall, Q2 market conditions in Whistler were balanced, with a slight lean in favour of buyers.
Pemberton
There were 31* sales in Pemberton in Q2, almost doubling the sales volume from the typically slower first quarter of the year. Year-to-date, there have been 17 less sales than there were at the end of Q2 2023. Median sales prices are down across all categories, likely because of the continued sensitivity of the market to mortgage rates. Inventory increased by almost 40% from April to June and currently sits at 94 units, which is the highest level Pemberton has seen since August 2020. There was one luxury sale in Pemberton over the $2M price point in Q2 vs two in Q1. 37% of Pemberton buyers originated from Whistler, 33% from Pemberton, 16% from the Lower Mainland and 8% from other areas of BC. Overall, the Pemberton market tilted in favour of buyers throughout Q2.
Looking forward, summertime in the Whistler and Pemberton markets is traditionally slower, with a pickup in the late summer to early fall as buyers look for places for the upcoming snow season. We may also see an inventory correction with the deadline to sell to avoid the new capital gain increase now passed and some unsuccessful sellers possibly taking their properties off the market.
Economists expect the Bank of Canada to hold rates at the end of July announcement, and introduce further reductions this fall, which we expect to further entrench the historical summer and fall market patterns. We haven’t yet seen any momentum from the initial 0.25% interest rate decrease announced at the beginning of June. Although in line with past rates, they are still notably higher than what borrowers have become accustomed to and overall, there is still a lot of economic uncertainty, some of which is being fueled by the volatility in the US market due to the upcoming November election. As a result, a lot of buyers and sellers are in “wait-and-see mode”, but for those who are motivated, there is an opportunity to be had from both perspectives.
*excluding parking stalls
Market Share
Whistler Real Estate Company agents represented 39% of the Whistler and Pemberton market in the first half of 2024 and helped our clients achieve amazing outcomes.
Regulatory Notes
Foreign Buyers Ban
As previously noted, the Foreign Buyer Ban does not apply to the Whistler or Pemberton markets, nor does the Foreign Buyer Tax.
New Provincial Short-Term Rental Legislation
In May 2024, the BC government introduced the Short-Term Rentals Accommodation Act. While short-term rentals in Whistler are not impacted by the new regulation, there are rules that those renting their properties for this purpose need to follow (i.e. obtaining and displaying your business license and updating your listings on websites like Airbnb with your licensing information). The Village of Pemberton has chosen to opt-in to the new provincial legislation on short-term rentals, so reach out to your local Whistler Real Estate Company agent to find out what this means for your property.
Underused Housing Tax
The Underused Housing Tax (UHT) is an annual 1% tax on residential property owned by non-resident, non-Canadians that is deemed to be vacant or underused by the Canada Revenue Agency (CRA). There are situations, however, where the tax or reporting obligations could apply to Canadian citizens or residents, so it is important to understand whether you are an excluded or affected owner based on your specific situation. We recommend that you talk to your accountant about how it may impact you and your Whistler or Pemberton property.
Residential Tenancy Act Changes
On July 18, 2024, there are significant changes coming to the Residential Tenancy Act that those who own or are looking to sell or purchase tenant-occupied properties should be aware of. Some of the key changes include:
Mandatory landlord use of a new web portal to generate Notices to End Tenancy for personal or caretaker use
Extended notice period from two months to four months
The individual moving into the property must occupy it for at least 12 months
It is strongly advised that you seek legal advice to navigate these new regulations effectively if you plan to proceed with a transaction involving tenant-occupied property to ensure compliance with the new rules and ensure understanding of the rights and obligations of the parties involved. More information regarding these changes can be found on the BC Government Website.
Small-Scale Multi-Unit Housing
The provincial government has introduced new housing legislation to update zoning rules to deliver more small-scale, multi-unit (SSMU) housing, with the intended objective of building more homes faster. In most municipalities of more than 5,000 people, these changes can allow for 3-4 units permitted on lots currently zoned for single-family or duplex use, depending on lot size. However, strata bylaws may impact this. Get in touch with your local Whistler Real Estate Company agent to learn more about how this may impact your Whistler or Pemberton property or property of interest.
