The fact is Realtors don't know any more about the direction the market is heading than our buyers and sellers do. We know over the long term that real estate increases in value. In the case of Whistler there are unique circumstances that make our market different than that of the more traditional big city market. It's one of the reasons why Whistler's real estate market has remained strong while the overall market in British Columbia was performing poorly.

Whistler does have some unique differences that will continue to create upward pressure on pricing. The most unusual is what is known as the bed unit count, or the number of pillows, which the resort will allow. At some point during Whistler's development it was decided that there had to be a cap on the number of people the resort could comfortably handle. This means that once this count is reached - presently 52,500 - there can be no new housing created.

The Cap and Rezoning Real Estate

In normal market conditions, as a municipality grows rezoning takes place that changes land use from single family to multifamily, such as to apartments or duplexes, increasing the number of properties available. Based on Whistler's cap this cannot happen. The number of bed units or pillows built is more than 46,000 and the remainder is allocated. The main village of Whistler is almost built out, as is Village North. The majority of remaining bed units are located at Creekside, Whistler's original village, and are slated as condominium units. There are also some bed units allocated for single family lots; the majority south of the main village.

What this means is that demand is going to increase at a faster pace than supply. This will be especially true for buyers who want new product. Like any commodity, when the supply is controlled the price usually goes up.

While the bed unit allocation will have the biggest impact on real estate values, there are other factors that are adding additional pressure. The staggering increase in the number of visitors to Whistler, both summer and winter, has increased the interest in real estate in our resort. As well, Tourism Whistler - formerly the Whistler Resort Association, the association formed many years ago to market the resort - has done an excellent job marketing Whistler as a world wide destination and we find our visitors coming from all corners of the planet. While British Columbia's economy has been slowed by the Asian crisis, Whistler has managed to attract tourists from other markets and has not felt the effects of the Asian flu.

This past season we were blessed by weather conditions that left us with one of the biggest snowfalls on record, while most of the other major ski resorts received some of their smallest snowfalls ever. Many skiers changed their plans and decided to come to Whistler due to snow conditions elsewhere. This brought us a number of new visitors who traditionally have not come to Whistler. There is no doubt that some of these new visitors will be back, and if they already haven't done so, will purchase real estate.

Whistler's Unique Position

Our unique position as a worldwide resort also means that many of our visitors are benefiting from the low Canadian dollar. They realize that his may not last forever and are taking advantage of the situation by purchasing now. We have many clients from around the world who, while not living in the United States, are paid in U.S. dollars. As well, the British pound has remained strong against the Canadian dollar. All of these factors have led to an increase in buyers from both the United States and Britain.

While there are many factors that can affect a real estate market, in Whistler the one that will have the most impact is the cap on new construction. When Whistler was in its infancy and the idea of a bed unit cap was established it is unlikely that the decision makers of the day had any idea that the resort would become such a worldwide destination, and never considered the impact the cap could have on the value and affordability of real estate. Over time demand will probably dictate that the cap is increased, but it is unlikely it will increase at a pace that will exceed demand.