Changes for 2023?
Change is in the air as we inch towards the midpoint of 2022’s fourth quarter.
With persistent interest rate increases from the Bank of Canada and the ever-present threat of a recession in 2023, it should come as no surprise that real estate sales in Whistler and beyond have slowed.
However, Whistler is a resort market where the rhyme or reason of a traditional market doesn’t necessarily match what happens locally. Listing and sale prices are a mixed bag right now and for good reason.
Q3 | Q4 Market Update
Our inventory is still at historically low levels (225 as of November 10th) and although we saw 46% fewer transactions in October 2022 than we did in October 2021, our average sale price rose from $1,369,077 in 2021 to $1,929,658 in 2022.
Well positioned condos & townhomes with short-term rental (ie: airbnb) zoning are continuing to draw a lot of attention from buyers and believe it or not we are still seeing multiple offers on certain properties. With Tourism Whistler reporting that bookings for the upcoming winter season are already 1% ahead of our busiest winter ever, this makes sense as buyers are expecting strong rental revenue from their properties.
On the other hand, sales of condos and townhomes with residential zoning have slowed, and in most cases, sellers have had to lower their expectations to match those of buyers in order to get their properties sold. Detached home sales in Oct 2022 were down roughly 50% from last October, but once again the average price increased.
Market Take Aways
What are the take aways from our current market and what does 2023 hold in store for the Whistler real estate market?
Well, if visitors continue to fill condo and hotel beds, properties with short-term rental zoning will be in demand.
Cash buyers looking for specific homes are likely to seize the moment when their ideal property surfaces. However, many of the current buyers are looking for bargains. Will they find them?
Owners in specific segments of the market including residential condos/townhomes and fractured interest properties looking to sell will have to price their properties aggressively if they want to get the job done in a reasonable time frame. It’s safe to say that we’re not going to return anytime soon to the kind of Seller’s market we’ve seen over the past couple of years, and it will likely get more challenging for these sellers before it gets better.