The Whistler and Pemberton real estate markets experienced a slow start in January 2023, but rebounded in February and March due to increased economic certainty. The Bank of Canada has signaled that interest rate increases have likely come to an end, leading to an increase in market activity and the return of multiple offers. However, inventory levels remain low, which is a major market constraint.In Q1, Whistler saw a total of 113 sales, with 93 of those sales occurring in February and March. Inventory levels improved slightly throughout the quarter, rising from 200 units in January to 229 in March. The median sales price of properties increased both year-over-year and quarter-over-quarter for townhouses and condos, while the market saw a slight decrease in the median price of single-family homes.Looking to Q2, an increase in inventory is anticipated as ski season and rentals wrap up. This may lead to more sellers putting their properties up for sale, ultimately fueling the spring market. However, some uncertainty remains due to the recent Silicon Valley Bank failure, making this a good time to invest in less volatile assets such as real estate.In Pemberton, there were a total of 23 sales in Q1, with over half of those sales occurring in March. Inventory levels remained relatively flat throughout the quarter, with an average of 51 units available. The median sales price was up quarter-over-quarter for single-family and townhouse units, while days on market decreased for both categories.Looking forward, there is an exciting new project coming to Pemberton - Tenquille Living. Tenquille is a 10-unit condo project that offers simplified mountain-living, within walking distance to downtown Pemberton and easy access to adventure. Interest in the project can be registered now, and construction is slated to begin this year.As the tax deadline approaches, clients may have questions about the Underused Housing Tax (UHT). Generally speaking, the UHT is an annual 1% tax on residential property owned by non-resident, non-Canadians that is deemed to be vacant or underused by the Canadian Revenue Agency (CRA). However, there are situations where the tax or reporting obligations could apply to Canadian citizens or residents. It is important for clients to understand whether they are an excluded or affected owner based on their specific situation. The application of the UHT is quite complicated, and it is recommended that clients talk to their accountant about how it may impact them and their Whistler or Pemberton property. Filings are due on April 30, 2023, but due to the confusion surrounding the UHT, the Federal government will waive penalties and interest for any late-paid UHT as long as the return is filed or UHT is paid by October 31st, 2023.In summary, the Whistler and Pemberton real estate markets saw increased activity in Q1, with the return of some multiple offers, but inventory levels remain a major constraint. Looking to Q2, an increase in inventory is anticipated, and the Tenquille Living project in Pemberton offers exciting new investment opportunities. It is important for clients to understand the complexities of the Underused Housing Tax and to consult with their accountant to ensure compliance with filing obligations.
