The 2021 Real Estate market has been like never before, and the prices of homes have experienced a huge jump overall with some of the lowest inventory we have seen. Big White is no exception: Steve Hyndman specializes in recreation properties and gives us the inside look into the Big White market, what has caused this shift and what we can expect to see as a result of this crazy market!
How has the Big White Market Changed in 2021?
Before the pandemic, Big White had a very balanced market, I would even say it was a buyer’s market. Due to covid, Big White sales have started to explode and that has caused inventory to dry up.
What has caused this shift in the 2021 Big White Real Estate Market?
- The Rental Market is Hot
Many factors have contributed to the shift we are seeing in the 2021 Big White market. The pandemic has caused many of the people that currently own Big White properties to rethink listing in the current climate. Since Big White is a winter recreational resort, they are usually secondary properties and tend to bring in great rental income, especially now that the rent has gone up due to more people staying local and travel has become less frequent.
- Out of Town Buyers
Another major factor in the low inventory is a high number of out-of-town buyers that are ‘safe haven’ buying. Big white is a great place to self-isolate and offers guaranteed rental income. The pandemic has caused interest rates to go down, and that has a huge effect on the movement of Big White properties as well.
- Low-Interest Rate
Because the interest rate is so low right now, it is making recreation properties more serviceable in terms of debt load, and this is causing buyers from all over a jump on the opportunity!
- Small Market
Big White has always been a smaller market and it is a great selling point. A lot of people buy at Big White because it provides a great feeling of community, has some of the best Ski-in & Ski-out properties, and is close to major cities. Big white being a small resort has caused it to be very reactionary to the changes we have been seeing in the 2021 Real Estate Market overall.
How do you think Big White will continue to be affected?
Big White has always been a more affordable option in the Okanagan, but recently it has exceeded the last market peak in 2008. In the past 8 to 10 years, there hasn’t been much development, and I predict this will change in the next 2 to 5 years. Prices at Big White are back up but there have not been any new builds, meaning no new inventory has been added to the market in almost a decade! That sounds like an untapped opportunity. I think you can expect to see new developments and expansion at Big White.