Cooler temperatures and colorful trees are plentiful here in Big Bear. There is no mistaking that summer has passed and the big question now is, when will the first snow arrive? (My guess is prior to Thanksgiving.)
Thanks for checking in on the Big Bear real estate market with us. There is a lot to get caught up on so let’s jump right in. What an amazing 3rd quarter for sales we have seen. You would have to go back 7 years to 2005 to find a 3rd quarter with more residential closings than 2012 (see graph below for perspective).
The market has shifted dramatically, with a big increase in demand, since spring of this year when you had to really squint to see signs of momentum heading into our summer selling season. Bank-owned foreclosures are still much sought-after but now only make up 5.4% of our active inventory and 14% of closed sales in the 3rd quarter, (as opposed to close to 15% active and 35% closed in 2009). Success with short sales has increased only marginally (14.5% of closed sales in 3rd Q 2012) and it still remains to be seen if shorts sales will ever become an efficient way to clear out remaining inventories of distressed property here in Big Bear. Unfortunately, the short sale process remains very cumbersome and frustrating for buyers.
So why are so many folks jumping off the fence and into the Big Bear real estate market now? Simply said, the historically low interest rates and rock bottom prices make it hard to ignore the unique life-style investment that Big Bear provides. Within a 2.5 hour drive of over 20 million people, Big Bear, with its two great ski resorts, big public lake and extensive national forest to explore and enjoy, makes for many a great place to invest in a vacation home. And, now is the time to buy.
The real issue at the moment in the market here in Big Bear is a lack of well-priced quality inventory. We currently only have 460 active residential listings. So, if you have been considering selling, the lack of competition makes for a great window of opportunity to grab the attention of interested buyers. Feel free to contact us to find out more about how best to achieve results.
Overall year-to-date (through September) compared to 2011 sales are up 29.5% and the average price has increased 2.2% The chart below illustrates this increase in demand.
Tight supply and increased demand is a recipe for a larger increase in prices and we will continue to monitor and report on how this develops so stay tuned. As always, please contact us if you have any questions. Until next time, happy hunting and may you have a very fun, safe Halloween.