Pemberton real estate activity during the first quarter of 2021 continued with its strong performance that it has been experiencing since June of 2020.
Although the first quarter of 2021 was not a historical record in terms of activity (which can be attributed to a lack of supply/opportunity) it was still well above the historical average for number of sales!
Average sales values continue to trend upwards with all segments seeing increases since the end of 2020. Increasing awareness of the beauty and active lifestyle, low average prices relative to the rest of the Sea to Sky Corridor, and low-interest rates have led to strong levels of demand for all types of real estate for the previous nine months and is expected to continue through this summer.
Historically low levels of available listings and limited numbers of newly built homes and residential developments will ensure that values will maintain an upward trend in a marketplace that will continue to favor sellers.
Watch Market Report Video
In our newest Market Report video, we’ll chat with the new owner, Wendi Warm, as she and some of our agents describe how our real estate market is unfolding in the first quarter of 2021 along with their inside knowledge on both buying and selling in this type of market!
As a micro-marketplace, reported market activity is largely driven by what is being offered for sale during the period under analysis. At the current time, building lot sales account for approximately 1/3 of all activity in the area. As a marketplace for primary residences, affordability and financing will continue to be the key factors in value appreciation, which means value increases will be more moderate on average than other areas in the corridor.
The average sales value for Pemberton for the first quarter of 2021 is $757,900 which is a 7% increase as compared to that reported at the end of 2020. The average price of a single-family home was $1,022,000 (median $989,000) which is a 9.3% increase since the end of 2020. Townhouses have risen 15% to $704,150 (median $721,500) on the strength of substantial interest at the new Elevate Townhouse developments. Condominiums have risen by 3% to $431,000 (median $473,500) and vacant land is largely unchanged at $434,000 (median $449,000).
Looking Ahead to Next Quarter
The high level of interest and demand has reduced the current number of properties for sale in Pemberton to a historically low number. Although new residential developments are expected to be offered through the balance of the year, the attractiveness of Pemberton as a place to live combined with low-interest rates and available funds will ensure the market will be brisk for both built homes and “to be built” homes through the summer months.
That being said, buyer frustration created from a lack of choice in lower price ranges or by an upward move in interest rates/inflation would lead to typical Pemberton buyers removing themselves from the market should prices move significantly higher. New buyers from outside the area are increasingly looking at Pemberton for opportunities so the loss of local buyers may have little impact.
Finally, construction costs are trending substantially higher for both materials and labor and will require higher price points to be justifiable for new builds. This in turn could reduce the number of potential buyers. Overall we would expect some moderation in activity from current levels, with a market that still favors sellers and value appreciation.