Thanks for checking in with me on the Big Bear real estate market. It is hard to believe that the first half of the year has already come and gone, but what an amazing ride it has been. There is so much to catch up on, so let’s dive right in.
Over the past few months, there has been quite a lot of positive news regarding new strength in real estate markets both nationally and statewide, as well as in Southern California. That said, it is important to realize that real estate is, in fact, a very local business. As an analogy: the average temperature in the USA on any given day will most likely not accurately describe the weather where you live.
We take the time and make the effort to keep you posted on the specifics of our local Big Bear real estate market in the hope that you will rely on us as your local representatives when the time is right to buy or sell in Big Bear. So, please do not hesitate to contact us should you have any questions. Our specialized knowledge of the Big Bear market and our local inventory will help you achieve a great result
The Big Bear real estate market has seen a dramatic increase in demand so far this year. The total number of residential sales in the 2nd quarter of 2012 compared to 2011 was up from 165 to 236, a whopping 43%! (The 1st quarter saw an increase of 14.7%, if you recall from my Q1 update.) From January to June overall, home sales increased 26.5%. This dramatic increase in sales was spread throughout the Big Bear Valley, with some areas seeing more activity than others. For example Sugarloaf (up 55.6%) and the East Valley (up 51%) showed the largest increases, while Big Bear Lake, Moonridge and Big Bear City averaged very respectable 20% increases. March and June were responsible for the lion’s share of these closings, with June 2012 showing an incredible 62% increase in dollar volume sold versus last year.
Following are a few other key statistics to consider when measuring the pulse of the market here in Big Bear:
- We currently have 614 active residential listings, which is still quite low for this time of year.
- Based on what is currently in escrow (164 homes), this equates to just over 5 months of inventory.
- The chart below shows the distribution of sales by category -- foreclosure, short sale, or standard sale -- of our active, in-escrow and sold homes in Big Bear.
- You will notice that foreclosures make up only 4% of our active inventory, but account for 27% of sales. There is still lots of competition for these quickly dwindling foreclosures, making multiple offers quite common.
Residential Sales, January through June, 2012
In summary, all this increased demand has not yet bumped prices up much. We did see a 5% increase in average price in the 1st quarter of this year; however, overall through the end of June the average price is off 2.8% compared to last year.
If the inventory remains tight and the number of sales stays brisk then as a result, prices may soon begin to edge up. It will be interesting to see if this momentum continues through the summer selling season. Stay tuned -- I will keep you posted. And, do let us know if you have questions or would like more information on the real estate market here in Big Bear.