Whistler’s real estate market, once a hotbed of activity, has stayed flat over the last B.C. Assessment period, while the rest of the province has seen an average 17 per cent increase in value.
Gone are the reports of 60 per cent increases in house assessments in certain Whistler neighbourhoods, or 30 per cent spikes in the condo market. Instead, B.C. Assessment has released its 2005 figures, which show the Whistler market on the whole has stabilized.
"We tried to take a broad spectrum of the types of housing in different price ranges, different areas, just to show that for the most part, most homes are worth pretty much the same as they were the previous year," said Jason Grant, assessor for the Vancouver Sea to Sky Region. "It’s the first year that that’s been the case for a long time."
Whistler is bucking the trends elsewhere in the area and across the province. The value of real estate went up 17 per cent across B.C. in the same assessment period – July 1, 2003 to July 1, 2004 – and the Squamish, North Shore and Sunshine Coast real estate markets have all seen strong increases.
"… (T)hose markets are up and they’re up substantially," said Grant.
The 2005 assessment is the estimate of a property’s market value as of July 1, 2004, based on transactions over the previous 12 months.
The figures released by B.C. Assessment show last year’s assessment of a single family home in Alpine Meadows was $1,056,000 whereas this year’s assessment is $1,023,000. Though it’s just a marginal drop in price, it’s a drastic change from the trends of the previous years.
Two years ago a single family home in Alpine Meadows on average had increased roughly 60 per cent. Only last year the Alpine home on average had increased 13 per cent. But Alpine Meadows chalets aren’t the only products feeling the brunt of the flat market.
A two-bedroom apartment in the village also decreased slightly this year, from $666,000 in the 2004 assessment to $660,000 in the 2005 assessment.
Perhaps the biggest indicator of the flat market is Whistler’s assessment roll, which is the assessed value of all real estate in the market including new subdivisions, rezonings and new construction.
Last year’s roll in Whistler was $9.88 billion. This year it’s $10.3 billion but the bulk of the increase, $380 million, was from new construction as opposed to market changes.
The figures came as no surprise to Mike Wintemute, general manager of RE/MAX Sea to Sky Real Estate.
"I would have been surprised if I had seen an increase, but to see stability is not surprising at all," he said.
There are a number of reasons for the levelling off of the market in Whistler. In particular, the market had a significant run up of pricing up until the spring of 2002, he said, and as such, it was due to stabilize.
"Markets, whether it’s housing markets, the stock market, or whatever, they don’t go up forever," explained Wintemute. "Markets do fluctuate up and down and even though Whistler may be a little bit unique compared to a more conventional real estate market… we’re affected by certain things, one of them being tourism. So if tourism numbers are down then clearly the numbers of people looking at real estate is going to be down."
The decision to host the 2010 Winter Olympics in Whistler and Vancouver, which was made in July 2003, did not impact the market in the resort as it did in the surrounding areas, added Wintemute.
"I think there was a bit more euphoria because everybody thought that the Olympics were just going to make everything go crazy, when in fact the market had already seen a substantial increase for the four years prior to the Olympic announcement," he said.
"That’s why we probably didn’t see the results of the Olympics that were seen maybe in Pemberton and Squamish, which had more effect on their markets, certainly Squamish."
A single family home in Squamish’s Garibaldi Highlands increased from an average $375,000 in the 2004 assessment to $428,000 in this year’s assessment. Likewise an average two-bedroom apartment in Garibaldi Estates jumped from $195,500 to $249,000 in the same time period.
While the increases weren’t as substantial in Pemberton, property values in that community were on the rise too.
A single family home in Pemberton increased in average assessed value from $422,000 to $440,000 while a two-bedroom townhouse jumped from $202,000 to $234,000.
Looking ahead Judy Shaw, manager of the Sussex Group Northface Realty in Whistler, was confident the market in the resort will change in the coming months.
"We’re optimistic that we’ll still have a good ski season and with the building of some of the Olympic venues beginning this year, I think we will continue to get investors coming into the marketplace," she said. "Because of our geographic location and the demographics I do believe that the resort looks positive for growth in the long run."
Wintemute also predicts some volume increases in the market this year.
"Certainly we’re seeing a bit more activity right now and I’m hoping we may see a little bit of price increase," he said. "I don’t think we’re going to see a substantial price increase."
He predicts any price increases will happen in the condo market. The chalet market, on the other hand, could soften a little, as could price of vacant land.
"In chalet homes I could see some softening in the assessed values because there’s a lot of that product out there and there isn’t a lot of buyers," he said.
"…(W)e’re already hearing some rumblings that there might be some softening in the prices that people are prepared to take for their vacant property."
As for commercial property, Grant said values were stable to increasing in most instances. He added that it’s even more difficult to give an average figure for commercial property because the product varies significantly from building to building.
B.C. Assessment does not create the assessed value of the real estate; rather, it is the market that determines the value of a property and the assessment authority reports that value to the property owner and taxing authority.
"Property owners who feel that their property assessment doesn’t reflect market value as of July, 1 2004 or the information on their notice isn’t correct, should contact the B.C. Assessment office indicated on their assessment notice by Jan. 31," said Grant.
"If property owners are still concerned about their assessment after speaking to an appraiser, they may submit a written request for an independent review by a Property Assessment Review Panel."
If homeowners are interested in comparing their property values to others in their area, log on to www.bcassessment.bc.ca .
Owners who have not received their 2005 Assessment Notice by Saturday, Jan. 15 should notify B.C. Assessment.
