In honour of what is supposed to be opening week at Big White (not enough snow) This week we are going to look at the Big White real estate market to see how it is fairing In the last year we have seen investment property purchase drop off due to the increased costs in borrowing and in real estate itself the financial sense just wasn’t quite there.
Amid all the short term rental restrictions coming to British Columbia, Big White will be a market that stands to benefit as they don’t appear to be impacted and especially if investors like to ski and snowboard. This week we are going to look at the overall health of the Big White real estate market, whether it be for personal use or investment. The real estate cycles in Big White are a bit different than the cycles in Kelowna and surrounding area, being driven largely by the ski season leading up to know has been peak season, which in relation I would liken it to the Spring market for the normal market.
Supply To start looking at the overall health we are going to start with the current inventory. Currently on the market there is 122 listings which for inventory is slightly higher than the 10 year average of 108 normally for this time of year, but not out of the ordinary. With the last three years of being lower inventory markets this is the first time since 2019 to hit inventory in November over 100 listings but the market has experienced over a 100 listings 6 times in the last 10 years. With the peak in 2013 of 213 active listings. Overall the amount of listings appear to be relatively healthy but we will see how the season progresses as demand will typically see a shift with the ski season as short term rentals. If you would like to see the current listings right now in Big White click here.
Demand Big White is unique, due to its proximity to Kelowna Big White caters to the wide range of people, you have the investor crowd, the type to buy a property up there solely for the rental whether it be rented out long-term or in the short term. On the other hand you have the people that want to buy it and keep it for personal use, and then you have the hybrid group that are in the middle where they rent it out as much as possible when they are not using it. So far in 2023 there has been 93 sales or 7.75 sales per month (including November sales until today) If you look at at the 10 year average sales are down to 59% of what the typical. This is about on par with what we are seeing in the normal real estate market for Kelowna and the Central Okanagan. Out of the 93 solds this year so far 2/3 rds(61) have been apartments, there has been 22 townhome sales, 8 single family sales and 2 lot sales. This seems to be a fair representation of Big White’s market with most of the inventory in apartments, with a decline in the last year in lot purchases, 2021 saw 24 lot sales and2022 of 12.
New Inventory Developers and new development will go where the money is. As we have seen demand shift to Big White we have also seen new builds and new development invest in Big White. Currently for new builds on the market there are 10 active listings that are 2022 and newer if you go back 5 years the next in 2020 there was similar inventory on the market over the 2019/2020 market which eventually all got absorbed during the summer of 2020 as buyers behaviours quickly changed and people sought out alternatives as they could not travel abroad and people invested more in recreation properties within Canada.
With the lag in building and issues getting labour especially up in Big White challenging new builds the lots we saw sell in 2020/2021 those properties are starting to be completed, we could see some more new builds coming on the market it is tough to know what stage every build is at and whether or not those lots were bought for personal occupancy or if they plan to sell them.
Right now the real estate market in Big White appears to be fairly healthy, following the same trend lines as Kelowna and other areas in the Okanagan. Currently there is 9 months of inventory with signaling a more balanced market but trending towards a buyers market.
Big White is a market to watch as this market will be one of the first to get pinched if carrying costs get to be too much as it is heavily weighted to the investors. The future is unknown but with the short term rental restrictions coming to BC Big White can stand to benefit as long term rents have not kept up with the increase in housing in most areas in BC, despite being a more inheriting risk Big White might be an opportunity for investors. Especially those investors that like to hit the slopes and mix a bit of pleasure with business. If you would like to get emails of what currently is on the market in Big White right to your inbox, let me know here, and reach out if you have any questions or need personalized advice, don't hesitate. Stay informed, stay ahead. What in the world can we do for you? Let us know. Mark and Maddie