2019 QUARTER 2 REVIEW
Summer is here and not only does it bring sunshine (and a little rain), but also some insight as to how the real estate market is shaping up for 2019 so far.The media and industry press releases provide insight to market trends and predictions across the region by aggregating data from broad geographical areas. When it comes to fully understanding smaller markets, however, we need to look a little deeper at the details. There are unique variants that impact smaller areas, especially when it comes to a resort community like Whistler.
Overall, the real estate market across southwestern British Columbia has taken a dip in activity, particularly when it comes to property prices where statistics show that sales are down about 40% when compared to the peak of the market, and prices have fallen by 10% over the last 12 months, perhaps even more so in the high end and luxury markets.
In accordance with the slowdown in overall activity, it’s not surprising that sellers are feeling more pressure to reduce prices, but this is situational given the type and amount of inventory available, in addition to the specific needs of buyers and sellers as they look to the future.
When we look at the Whistler real estate market specifically, the numbers are similar to the results we saw in the first quarter of 2019: we can see that overall sales continue to fall, and when compared to the first six months of 2018 overall activity has declined by 37.5%, in line with the regional trends being reported.
The decline in the number of transactions has affected all property types, but townhomes and condos the most. Interestingly, the current market is on a par with what we experienced in 2009 (pre-olympics), yet today there are less than half the amount of properties on the market when compared to ten years ago.
If we look at the numbers more closely we can also see that the slowdown has meant properties are staying on the market for longer, increasing inventory for buyers. That being said, interest in Whistler properties continues as we see that average sales prices have not only remained consistent with the second quarter of 2018, but have also slightly increased since the beginning of 2019.
In response to overall market performance we can see noticeable shifts in behaviour within each segment of the market. Townhome values continue to drop and condos and single-family homes are the areas reporting price increases.
Breaking the numbers down a little more:
- Townhomes have experienced a price drop of 11% since January 2019
- Condos have increased sales prices by 11% (largely due to rental opportunities)
- Single-Family Homes values have increased by 7.2%, although they are still 5% lower than quarter 2 of 2018
What We Expect Moving Forward
We can see that the performance of the market is dependant on the amount and type of properties being offered for sale, so here are some key considerations for buyers and sellers moving forward:
- Data and trends being reported for B.C as a whole may not accurately reflect the real estate market activity of smaller regions and towns, such as a resort community like Whistler.
- With the slow down in activity we’re seeing properties remain on the market for longer than previous years. We’re noticing however, that well-priced, well-located or unique offerings will attract steady interest, and could generate a multiple offer situation.
- Regardless of the short term increase in inventory, the overall number of properties available still remains lower than we’ve seen in previous years – if you find your dream home you may not want to hesitate for too long.
If you are curious about what your home is worth in today’s market, or if you are wondering how to be successful as a buyer in this market, or even if you are just looking to stay up-to-date on the current market trends, contact me and I will be happy to discuss the current market with you and how you can accomplish your real estate goals.
*All stats deemed to be accurate and taken from the Whistler Listing System, July 2o19