Economy and Interest Rates
From an economic standpoint, Canada’s economy saw an unexpected contraction in Q2 as a result of slower consumer spending, public sector strikes, forest fires and a reduction in housing investment. Statistics Canada noted an 8.2% fall in new construction and a 4.3% reduction in renovations in Q2, coinciding with the Bank of Canada introducing two consecutive interest rate increases in June and July after a 5-month hiatus from increases in the overnight lending rate. The Bank of Canada announced an interest rate hold on September 6, likely as a result of this economic contraction. However, two more interest rate announcements are scheduled for this year, and with the slight uptick in the most recent inflation stats from July, there may be increases before the year is out. This uncertainty may continue to impact consumer confidence and further housing investment.
Whistler Real Estate Market
Whistler saw a continuation of the typical, slower summer market with a total of 31 sales in August. Year-to-date, cumulative sales are sitting about 20% below the 5-year average. The median sales price for single-family, condos and land were notably up both year-over-year and month-over-month. Despite fewer sales, inventory only increased for single-family properties, and total inventory (235 units)remains in line with levels seen in June and July, as well as levels seen this time last year. Overall, Whistler market conditions remain balanced.
Pemberton Real Estate Market
Pemberton saw a busier month with 8 sales in August, comprised of 3 single family, 2 townhouses, 1condo and 2 lots. The overall median sales price was down slightly from July, likely a continued result of the mortgage rates impacting borrowing power and leading to the search for and purchase of properties with a lower price point than what might have been feasible for buyers this time last year. In August, inventory in Pemberton continued to increase to 81 units, including 21 vacant lots. Overall, the Pemberton market has tilted in favour of buyers.
*Based on Whistler Listing System (WLS)