Whistler Fall 2012 Newsletter

A Stable Real Estate Market & Winter Around The Corner

Whistler - October 4, 2012. 

It's that time of year again…the leaves are changing colour, the nights are getting cooler, and it's time for the Annual Whistler Blackcomb Turkey Sale. All in anticipation of the winter season fast approaching. However, looking back on the summer, it was a good one in Whistler. After another cool and damp "June-uary" Mother Nature rallied and by mid-July brought us an outstanding mountain summer. Hot, dry sunny days followed by beautiful evenings that could be enjoyed outside, late into the evening. A stroll through the Village on any day, revealed tourists, Vancouver folks and locals taking full advantage of the weather and the activities. Whistler was buzzing with free summer concerts, various sporting events, packed patios, busy strolls and mountain-top activities.  All in-all a good summer to remember!

On the real estate side, the climate of the local market continues to be much the same as it has been over the past year. As stated in my Summer 2011 Newsletter… " The buying trends of the past several years are the same trends driving today's market. Lifestyle, recreation and principal residence are the key reasons for buying. The majority of buyers continue to be from the Metro-Vancouver area with a small number of foreign buyers from the Western US and Asia." 

As of September 30, in reviewing the Year-To-Date sales statistics, total dollar volume and sales are up over the same period last year.

Key Points - The majority of sales are in the condominium and townhouse market (price range $300,000 - $700,000).  Chalet sales totalled 65, very similar to last year (69), with the average price on par with the last few years at $1,500,000.  The luxury chalet market had 16 sales over $2,000,000 compared to 11 in 2011. Phase 1 townhouses and condos saw the largest increase in sales compared to last year. Vacant land had 12 sales compared to 15 in 2011. Quarter-share ownership with 38 sales was slightly below last year (44 sales) with a moderate drop in the average sale price. (Note: Sales Statistics from the Whistler Listing System WLS as of October 4th.)

In summary, selling prices and sales transactions over the past year indicate the Whistler market is stable. Buyers continue to look for good value and long-term ownership. Sellers who are serious about selling realize they need to lower their expectations and adjust to the current market values.  On the financing side it appears interest rates will continue to stay low so there is still good opportunity to enter the Whistler market for the right reasons.  

So as I write this, the sun continues to shine (interesting to note August/September were one of the driest on record) and there is a definite chill in the air bringing anticipation of another great winter season.  And with winter comes not only new visitors from near and far but people who return to Whistler year after to year to explore and enjoy this mountain paradise.  

Have a great Fall Season as we look forward to the snow! 

Cheers,

Ron

                             Homes & Land Magazine Editorial July 2012
                   
          
               REAL ESTATE IN WHISTLER STILL A GOOD BET!


Few Canadian destinations garner the international acclaim, exposure and world-wide attention as the municipality of 9824 residents an hour north of Vancouver. Regarded as one of the best ski destinations in North America and one of the top overall resorts in the world, Whistler has come a long way from its humble roots as a fishing lodge back in the early 1900s, and today it has emerged as a year-round resort destination that attracts more than two million visitors annually from across the globe.

Designated the first resort municipality in Canada in 1975, it wasn't until 1980 when Whistler Village, Blackcomb Mountain and the north face of Whistler Mountain first opened that the world started

to take notice. Nine years later it was ranked among the top destinations in the world, paving the way for a real estate boom that started to gain momentum in the late 1990s. 

Whistler's housing market took on a life of its own in the early 2000's thanks to a soaring US dollar that peaked in 2002 when the area became known as a destination of choice for American and non-resident purchasers. Prices doubled virtually overnight and armed with a dollar that was worth more than $1.50 Cdn, US buyers were leading the charge. The gradual decline of the greenback over the next five years meant fewer purchasers coming north and the market slumped in 2007 before peaking again in 2008 thanks to Vancouver's red-hot housing market. 

Since then Whistler's real estate market has definitely cooled off and although values have come down from their peak, the number of transactions in 2012 is on pace to exceed 2011, which in turn was higher than 2010 suggesting things are pointed in the right direction.

Through good times and bad, pre and post Olympics, and soaring and slumping currencies, local purchasers of Whistler property (consisting primarily of buyers from the Lower Mainland) have

been a stabilizing and reassuring force on the local housing scene. With less than a quarter of buyers now coming from outside the Lower Mainland including only about 8% from the US, sellers have

turned their attention to a buyer much closer to home. Purchasers from the Lower Mainland are buying for personal use, lifestyle and a 10 to 20 year phase of ownership, comments Ron Mitchell, Managing Broker at Sutton Group West Coast Realty in Whistler. They've been watching the market closely for a long time waiting to see what would happen after the Olympics and they understand that Whistler offers very good value as far as mountain resorts go for a number of reasons. First, all the infrastructure 

from restaurants to golf courses to other local facilities are already in place. The area is fully developed from the moment you buy. Second, it's become a year-round destination and not just a place to go for a ski weekend at Christmas. And third, with the new highway it's easily accessible and convenient to get to.

And just what does all of this mean for buyers and sellers? Part of the challenge with predicting real estate trends is you can get caught up in the past, Mitchell explains. Someone trying to sell a property today may have to reset their expectations and not think about what that property may have been worth a few years ago. As for buyers, if someone has the financial capabilities to buy a lifestyle property, there's very good value right now and the opportunity to provide a great ROL -  Return On Lifestyle.

In a market like Whistler, isn't that ultimately what it is all about? 

Whistler Spring - April  2012 - Resort & Market Update

Officially the "Winter Snow" season has ended ( as of April  22) and the "Spring" season is gearing up. The snow in valley is gone and we are waiting to see our first hungry bear munching on some fresh skunk cabbage. A sign that Spring is in the Valley!

The winter season ended much like it started back in November with March being a banner month for snow. And with the current snow pack on Blackcomb Mountain (114 in / 290 cm) there will be some great late Spring skiing and riding until May 28.

Overall the winter of 2012  was a positive one, excellent snow conditions, skier visits up over the previous year and 1st Quarter real estate sales slightly ahead of last year. 

Tourism Whistler reported hotel room nights up from last year although the average daily room rate was down slightly. The "Rubber-Tire" market (Vehicle Transport)  continued to contribute the highest numbers with the majority coming from BC and to a lesser extent Washington State. The top destination markets (Airline Transport) were up from last year with the US, UK, Ontario and Australia leading the way.

On the real estate side, 1st Quarter sales continued to build on the activity we saw last Fall. First quarter sales totalled 123 compared to 108 for the same time in 2011 (excludes Shared-Ownership, Timeshare and Employee Housing) . Total Shared-Ownership sales were 12 compared to 15 in 2011 Q1. Currently there are 685  Whole-Ownership Listings on the Whistler Listing System (WLS) and 103 Shared-Ownership Listings. (Source WLS).

Most real estate analysts determine the state of a local market by the  "Listings to Sales Ratio" or the "Absorption Rate".  The "Listing to Sales Ratio" is determined by the Monthly Number of  Sales Divided by the Total Number of Listings.  The Rule of Thumb is; Seller's Market over 20% / Balanced Market 15%-20% / Buyer's Market - below 14%. 

Although the overall Whole-Ownership market conditions in Quarter 1 indicate a balanced market  ("Listing to Sales Ratio of 17.9%  with 123 sales/ 685 listings), in my opinion most Property-Types in the Whistler market still favour a "Buyer's Market". However due to the "Complexity" of the market, the variety of "Property-Types" and "Range of Values" one must examine the specific "Micro-Market"  to determine the exact status.  

Using "Listing to Sales Ratio" ( Monthly # Sales Divide Total # Listings)  the Chalet market in the $1M to $2M range is a Buyer's Market. For example, in March there were 40 listings in the $1M to $2M range and 3 sales (3/40 = 7.5%).  If there is a specific area of the market that is of interest to you, drop me an email or phone call. 

In summary, the post-Olympic market of the past two years is still prevalent: price reductions are common and buyers are still selective as they look for good valued properties with motivated sellers . However I believe we are nearing the bottom of the price cycle. Properties that are priced right, sell. It appears for most property-types the current selling prices are setting the new "Baseline Values."  However there can be exceptions especially with property-types or condo complexes that have weak demand and insufficient sales.  

Overall Whistler continues to be an attractive "Lifestyle" purchase. It is a place for family and friends to connect and enjoy.  As we look ahead, the 2012 market should be very similar to what we saw in 2011 as we work towards a more balanced market in 2013.

Feel free to send me an email if I can assist you further.  

Enjoy the late Spring and early Summer.  See you around Whistler!

RM

Real Estate Association of Whistler - Recent News

The local real estate association in Whistler known as the 'Real Estate Association of Whistler" (REAW)  recently launched a public website portal….WhistlerListings.com

This was accomplished through REAW receiving licensing approval from the two owners of the privately owned local cooperative listing system known as the Whistler Listing System.

Here's a recent article in the Real Estate Magazine - REM*
CLICK HERE

*REM is Canada’s premier business publication for the real estate industry. REM is published 12 times a year. It is independently owned and operated and is not affiliated with any real estate association, board or company.

(Footnote: Please note in my opinion some of the reporting information in the REM article may not be 100% accurate.)

The Vancouver Sun - Whistler Properties

Here's a recent article from the Vancouver Sun newspaper on the Whistler real estate market…. CLICK THIS LINK:
Vancouver Sun - Whistler real estate market February 17, 2012

Finally Some Positive News For The Local Whistler Market…

Whistler 2011 Real Estate Market in Review

Finally some positive news for the local Whistler market….as buyers look for attractive buys and acquire well-valued properties. As a result, the end of 2011 saw the highest number of sales since 2008.

2011 Total Sales = 543 *(Excludes Timeshare & Employee Housing). Compared to the previous year - 2010 = 450* 

Since the late fall of 2008 Whistler prices have continued to be soft with motivated sellers being forced to lower their asking prices in an attempt to attract the buyers. The 2010 Olympic year side-lined most buyers as they waited to see the impact of the Olympic exposure.  Given the state of the US & World economies it really was no surprise the post-Olympic market continued to be a buyers' market with high levels of inventory.

In summary, most buyers are acquiring properties for personal use. Selling values in many cases are 20%* to 50%* lower than the peak values of the past 10 years (especially years 2001- 2003). *(Depending on the Property-Type). The outlook for 2012 should be similar to 2011 with "Value-Buys" and "Personal- Use / Lifestyle" being the reasons for acquiring a Whistler property.

The bottom line is…If one has the financial ability and a Whistler place has been on your radar, 2012 will be another good year to acquire a Whistler property. 

Here's a Snapshot of the 2011 Whistler Sales:

Highest priced sale was a luxury chalet that sold for $8.7m 

24  sales over $2m.

70 sales between $1m to $2m.

387 whole ownership sales under $1m.

62 shared ownership sales.

Here's a look at Whistler's bedroom community -  The Village of Pemberton;

Total Pemberton &  Area sales:  2011=56 vs 2010=87. 

Data Source: (WLS) The Whistler Listing System  (E&O.E).

If you want more detailed information or if you are looking to connect with a knowledgeable group of agents, drop me an email or phone call. We're here to help!

Ron Mitchell

Managing Partner / Broker

A Winter Surge in Whistler Business

From Tourism Whistler January 23, 2012


Perfect storm of conditions combine for surge in Whistler business….

Whistler, B.C. – An unprecedented snow advantage, combined with Tourism Whistler’s marketing efforts and pent-up post-Olympic consumer demand have aligned to create the perfect storm of conditions for Whistler, where bookings are up significantly this winter over last.

Tourism Whistler reports that December 2011 was the busiest December on record in terms of room nights booked, with an increase of approximately 12 per cent compared to December 2010 and a six per cent increase over the previous record held in December 2007.

Combined with increases in the month of January, February and March (room nights booked to date, as well as pace of bookings) the upward swing has resulted in a revised winter forecast from Tourism Whistler.

Research gathered originally indicated that room nights for the 2011/ 2012 winter would be up by approximately four per cent over the previous winter. With the latest numbers, however, Tourism Whistler has revised that forecast to be up by at least 10 per cent over last winter, in terms of room nights booked, making the 2011/ 2012 winter season the strongest winter since 2007/ 2008.

Improvements are being seen from all key destination markets however Tourism Whistler officials caution that the worldwide economic situation continues to play a role in resort business levels.

“It’s fantastic that we’re seeing the benefits of our efforts,” said Barrett Fisher, Tourism Whistler’s President and CEO. “Early results this season indicated a very positive response to our marketing initiatives – and there’s no doubt that we’ve effectively tapped into pent up demand.”

“However, we do have to recognize that while this is shaping up to be an exceptional winter season in terms of room nights,” said Fisher. “Consumer behaviour continues to evolve and we need to be cognizant of that and adapt accordingly.”

In addition to the success of Tourism Whistler’s marketing efforts following the unprecedented exposure from the 2010 Winter Games, Fisher pointed out several other factors affecting the positive results, including: gains in early bookings through tour operators, the resort’s early booking offers, interest generated by the Whistler Sabbatical Project, the resort’s 2011/ 2012 winter marketing campaign; and Whistler’s unprecedented snow advantage.

“Whistler capitalized on extremely positive positioning with our early booking efforts,” said Fisher, “and we know that the Whistler Sabbatical Project – which has received more than 15,000 entries and tens of thousands of viewers watching the weekly vignettes – has really resonated with people.”

The exceptional snow conditions in Whistler served to layer on additional bookings for the resort in recent weeks. Last year the resort received more than 52 feet of snowfall, shattering the average annual accumulation of 34 feet, and La Niña is helping pave the way for another strong snow season. Whistler has received 20 feet of snowfall to date and offers 8,171 skiable acres of terrain – more than any other destination in North America.

“We recognize how fortunate we are,” said Fisher. “Mother Nature has been very kind to Whistler and we’re pleased to see other resorts starting to receive some snowfall. That’s good for the entire ski industry in the long-term.”

The first few months of Whistler Blackcomb’s 2011/ 2012 winter season have been excellent, with 613 centimetres (241 inches) of total snowfall. The resort has received 68 centimetres (27 inches) in the past seven days and 28 centimetres (11 inches) in the past 24 hours. The forecast is calling for up to 45 centimetres (18 inches) this week. Visit Tourism Whistler website