Let’s talk about what happened in the Whistler and Pemberton real estate markets in May.
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Whistler Market Recap:
Following 4 months of consecutive sales increases, Whistler saw a slight dip in sales volume, with 45* units sold in May. Despite volume decreasing, median sales price was up significantly when compared to April as a result of the product mix sold – including over double the number of chalets and approximately half the number of phase 2 units. Inventory levels rose an additional 8% in May to 339 units. Days to sell also decreased 17% to a median of 29 days. Whistler market conditions remain balanced.
Pemberton Market Recap:
May was a slower month than April in Pemberton with 9 sales. After seeing a slight dip in April, inventory increased by a significant margin of 31% to 89 units in May. For a market where inventory and choice is often a challenge, this is good news for buyers. The median number of days properties spent on the market was down over 60% vs last month for chalets, townhouses and vacant land respectively. Overall, the Pemberton market has returned to leaning in favour of buyers following a more balanced moth in April.
In economic news, the Bank of Canada cut interest rates by 0.25% on to 4.75% on June 5. This was an anticipated cut following reports the Canadian economy missed Q1 GDP growth targets and core inflation is nearing target levels. Long term mortgage rates had already begun to make the adjustment downward in preparation for the rate cut. While this rate decrease offers limited relief to borrowers in the immediate, it’s a sign that the quantitative tightening cycle is over and economists predict further rate cuts to come this year, with said cuts anticipated to fuel the Canadian real estate market. From a global perspective, the European Central Bank is expected to follow suit and announce a rate cut later this week while we may not see cuts in the US until the fall, bolstering the strength of the US vs Canadian dollar and offering favourable exchange rates to would be American buyers.
It is an interesting time in our markets. Sellers seem to be motivated, some by the impending capital gains changes, and we anticipate we will see buyers start moving off the fences following the expectation of further rate cuts to come this year. We have more inventory than we have become accustomed to in both the Whistler and Pemberton markets, so remind your buyers they have more choice and acting now may help them avoid multiple offer situations and potentially higher prices that may come with a more intense summer market if/when further rate decreases add fuel to our markets.
