What happened in the Pemberton real estate market in the first quarter of 2022?
The pace of sales in Pemberton slowed by over 30% in Q1. Pemberton typically averages about 9 sales per month, but Q1 saw an average of around 6. This is indicative of a general slowing across all markets, but it is exaggerated by Pemberton’s lack of available products. Pemberton is currently sitting at historically a low level of inventory with only 21 active listings, 6 of which are not move-in ready until 2023. Prices in Pemberton continued to rise in the first quarter of 2021. Driven by the lack of inventory, the average sales price in Pemberton in Q1 increased to over $1.1M, up 18% from an average sales price of $932,000 in 2021.
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Sales Prices – With the limited number of sales that have taken place so far in 2022, it is hard to predict if the average price point of $1.1M will continue to hold. The biggest influence will be the type of inventory that becomes available to the Pemberton market.
Economic Policy – The 25 basis point interest rate increase announced by the Bank of Canada in March, while perhaps anticipated to be more of an issue in the live-work market that is Pemberton, has not yet had an impact on demand. As additional interest rate increases are expected throughout the year, we may eventually see its impact on the Pemberton market. The foreign buyer ban announced on April 7, 2022 as part of the Federal budget will exclude recreational properties. The impact this will have on the Pemberton market will be dictated by how recreational properties are defined. We recommend keeping in touch with your real estate agent to learn more as this regulation develops.
Inventory – Supply is the issue in Pemberton and we anticipate that will continue to restrict that market throughout 2022. The future development slated for Pemberton while exciting will do nothing in the immediate to remedy the extremely low inventory levels the market is currently facing.