House prices in one BC ski community increased 45% in just one year

Home prices in some of BC’s most popular ski communities increased at rates outpacing the province’s urban centres, according to a new report from Royal LePage.

The hot recreational property market is expected to cool somewhat this year, but not in all communities — which could continue seeing soaring home prices through 2023.

Housing prices soar at Big White

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Big White, near Kelowna, posted the largest year-over-year house price increases of the province’s ski towns. A detached home is now 45% more expensive than it was this time last year, with a benchmark price of $1.6 million.

Condo prices at the hill also increased 11% year-over-year to $500,000.

Royal LePage forecasts that prices will only increase further this year — by up to 7%.

“Transactions at the upper end of the market are largely responsible for the dramatic price increases in the single-family segment, as Big White continues to attract luxury recreational property buyers,” Andrew Braff with Royal LePage Kelowna said. “However, demand has slowed over the last year as buyers adjust to the rising interest rate environment and sellers feel less urgency to list their properties.”

Braff added luxury property owners are less impacted by changes in the market and are more likely to keep a property in the family long-term.

Condos in Revelstoke more expensive than Metro Vancouver

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Revelstoke, a renowned ski town of about 8,000 people that’s an eight-hour drive from Vancouver, has seen massive housing price increases since the pandemic.

The average condo price in Revelstoke now stands at $778,500 — about $50,000 more than the benchmark condo price in Metro Vancouver. That’s a 37% increase from this time last year in the ski town.

Detached house prices also made gains in Revelstoke — up 13% since last year to an average of $850,000.

Many buyers are relocating to Revelstoke for its outdoor recreation opportunities, and cashing out their properties in more expensive regions.

“Property sales have slowed since hikes to interest rates began earlier this year, with first-time buyers and those with tighter budgets the most affected by rising borrowing costs. Still, this will be the second-best year for Revelstoke on record,” said Don Teuton, broker and owner at Royal LePage Revelstoke.

Remote workers drive up housing prices in Sun Peaks

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This ski resort near Kelowna saw a 13% increase in detached home prices and a 27% increase in condo prices this year.

Rising interest rates may encourage additional homeowners to rent out their properties on short-term rental sites to recoup some of their monthly expenses, according to Royal LePage Westwin Realty representative Kyle Panasuk.

“We continue to see a desire for home office space from buyers who can work remotely. The local school, skating rink, and access to ski-in, ski-out amenities at Sun Peaks are a draw for many local purchasers, as well as remote workers from outside the region looking to relocate to the community full-time.”

Whistler’s benchmark house price sits at $3.6M

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In Whistler, about two hours north of Vancouver, the average detached home price increased nearly 15% year-over-year to $3.6 million. Condos increased nearly 10% year-over-year to $673,000.

By comparison, Metro Vancouver condo prices only increased 5% year-over-year as of October 2022, and detached homes increased 1.6% from last year.

Whistler housing prices increased despite a slowdown in the number of sales since the pandemic buying boom, according to Royal LePage.

“In addition to skiing, summer activities such as biking and golfing – coupled with people’s overall desire to be outdoors in nature – make Whistler a popular year-around recreational destination that attracts both regional and international luxury buyers,” Frank Ingham, associate broker at Royal LePage Sussex, said in a news release.

Whistler is exempt from BC’s speculation and vacancy tax and is attractive to buyers based in Washington.

“Demand for properties in the area remains strong, although muted compared to last year. Potential buyers today have more choice and more time to sign a deal, as inventory continues to increase along with the average days on market.”

Royal LePage predicts detached home prices in Whistler could decrease by as much as 10% in the coming year.