Whistler Real Estate Newsletter

WHISTLER 2008 REAL ESTATE UPDATE

A Review of 2008’s Market Activity

Half way through 2008 and one can only wonder where world wide economics will end up when we ring in the New Year. Everyone has felt some repercussions from the recent spike in fuel, the volatility in the stocks markets and the housing crisis in the US. While Canada does not have the same exposure to the sub-prime mortgage fiasco that has hit the US, we are never the less affected by a decline in exports to the US market, caused by both the high Canadian dollar and the slowing US economy. After several years of a very strong real estate market in North America the US has seen a dramatic slow down in real estate sales and declines in real estate values. Here in Canada we have just recently started experiencing a slow down in real estate sales and a cooling off in real estate price increases. There may even be some softening in real estate value as inventories increase and sales volume slows.

So what does all this mean to Whistler? From a value standpoint Whistler did not experience the increases in real estate prices that the rest of North America did during the past several years. In fact Whistler’s assessed values for property tax purposes only increased about 10% in 2007, which is the first such increase since 2002. As we have pointed out many times, in our previous market analysis, our current house values do not reflect the cost of new construction (replacement value). From an investment standpoint Whistler is undervalued when compared to other resorts, which supports Whistler as being a safe purchase and hold real estate.

Besides the quality lifestyle, Whistler offers there are two fundamentals that keep property values from dropping. The majority of property owners in Whistler are absentee owners and these residences are usually their second or third home. Therefore when they do decide to sell it is rarely motivated by the need for money or the need for a quick sale which results in them holding out for close to their asking price.

The second fundamental is a lack of new construction. Often times in a strong real estate market there is a large increase in new construction and at some point when the market cools there may be excess inventory which requires some price reduction to keep the market going. In Whistler, regardless of a strong or slow market, the one thing Whistler lacks in any appreciable amount is new inventory. More often when the sales volume slows down in Whistler it is usually due to a lack of desirable re-sale inventory rather than a lack of qualified Buyers.

Finally there are the 2010 Olympic winter games. While we don’t expect real estate prices to be dramatically affected prior to the games there will be no doubt that the media exposure leading up to the games and the exposure during the games will introduce Whistler to hundreds of millions of potential new investors that will make a trip here after the Games.

So, while there may be uncertainty in the overall economic picture, it is our recommendation that Whistler continues to be exceptional value and a safe and secure investment opportunity.

Mike Wintemute is the General Manager of RE/MAX Sea to Sky Real Estate Whistler

 

DISCLAIMER;

E&OE
All information is provided by the Whistler Listing System and is deemed to be accurate.  The Whistler Listing System and RE/MAX Sea to Sky Real Estate Whistler make no warranties or guarantees as to the accuracy of the information and cannot be held responsible in the event of error.