Big Bear Real Estate: Market Momentum
Year-End 2009 Report
Winter is in full effect here in Big Bear. Lots of new snow is coming down to kick off 2010. Does the rough weather make for a rough real estate market in Big Bear? I commented in my last blog about the momentum in the Big Bear real estate market heading into the New Year and the absence of signs of the usual seasonal slowdown in sales we typically see during the winter months. An interesting article yesterday in the “The LA Times” reported that this trend is indeed proving to be the case in real estate markets all over Southern California. We have lots to cover, so let’s take a look at the numbers affecting the Big Bear real estate market and project what those indicate going forward, shall we?
Currently there are 659 active residential homes listed for sale in the Big Bear Valley. This number has decreased 47% from mid-summer last year when there were roughly 1,250 active listings. There are currently 135 homes in escrow, which leads to an absorption rate of a whopping 20%. This rate, which shows there is currently just under 5 months of inventory on the market, has nearly doubled from the 10% - 12% we saw for much of 2009. This tight supply and increasing demand has led to a more competitive market for buyers. For the best cabins in the best locations it is progressively more common to see multiple offers within just a few days of a property hitting the market and also to see properties selling well above their list prices. What is interesting to note, is that these hot properties are not all owned by banks. Re-sale listings, when priced well, are drawing more and more attention too, as they often do not require as much refurbishing. As a buyer in this market it is essential to work with an agent like myself with the expertise to successfully navigate these types of situations in order to not end up paying too much and to also ensure the desired result. Feel free to contact me for more information on this.
We have been reporting on the trends showing stabilization in the Big Bear real estate market in the later half of 2009 and are now seeing more and more evidence that, on the lower end at least, momentum is increasing going into 2010. Let’s take a look at what transpired in 2009 in the Big Bear real estate market:
- There were a total of 886 closed residential sales. Re-sales made up 54% of those sales and bank-owned properties accounted for 37%, leaving short sale closings at 9% of the total. (Short sales are becoming more and more difficult to close for many reasons, which at times, seem not to make sense, but are in fact evident. Let me know if you want more info on these types of sales.)
- Most of the money changed hands under $500k: 90% of all closed sales were under that mark and 60% were sold under $250k.
- Also of note is the improving trend in December monthly sales: in December of 2007 there were 52 closed sales, in December 2008 there were 44, and in December of 2009 there were 79.
- There are currently 135 pending escrows, of course not all are scheduled to close this month. However, compared to January '07 closed sales of 54, January '08 of 30 and January '09 of 51, January this year is much busier.
Interest rates, for now at least, are still historically low and prices are at times astounding. So if 2010 is the year you intend to take the plunge and buy in Big Bear, contact me regarding how best to make that happen. As always I look forward to hearing from you or please fee free to use Big Bear Real Estate @ www.RealEstate-BigBear.com as your source for current information on the Big Bear Real Estate Market. Happy hunting!
*all local data quoted from Big Bear MLS*
Big Bear Real Estate: Market Momentum