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June 2018 Market Update by Mike SannesBig Bear Real Estate - The Mike Sannes Team, June 15, 2018

Hello from Big Bear and thanks for checking in with us regarding Big Bear real estate. As we are already over five months into 2018, let’s dive right in and catch up on the happenings in the Big Bear real estate market.

The listing season is well underway and the number of homes for sale here in Big Bear has significantly increased since our last update. You’ll recall from our first-quarter update that the inventory, which typically declines in the winter months, dropped much more than usual this winter. In February of this year there were only 262 active residential listings; this is the lowest we have have seen since I began selling real estate here in Big Bear in 2004. However, by mid-April there were 364 active listings and currently there are 469 active residential listings on the Big Bear MLS. As expected, we have seen a substantial increase in supply as we head into summer.

Historical Absorption RateBut as we know, markets are driven by both supply and demand. An informative market metric that illustrates both supply and demand is the absorption rate: The rate at which active listings are being absorbed (a.k.a. purchased) by the demand in the market. The absorption rate is often thought of as the "speed" of the market. For example, if we have 100 active listings with another 50 homes in-escrow, the absorption rate would be 50%. This would be akin to doing 100 mph in your car, as a 50% absorption rate in Big Bear is a very fast market, whereas 25% is quite slow.

With 469 active listings and 151 homes currently in-escrow (which equates to 4.7 months of supply), we currently have a 31% absorption rate in Big Bear. As the chart above illustrates, this is down notably as compared to the prior five quarters.

For you information, the charts below show the current absorption rates by area and by price range.  Where the absorption rates are red, that indicates the speed is faster than the overall market.  Where the absorption rates are blue, this indicates that the speed is slower than the overall market.

Absorption Rate

Also of note: When looking at the first five months of this year as compared to last, you’ll find that the number of closed residential transactions decreased by a sobering 12.6% (483 in 2017 vs 422 in 2018). The Fox Farm area took the brunt of the decline. However, the average price of all the residential homes sold during this same period, increased by a substantial 14.9% ($306,205 in 2017 vs. $351,723 in 2018).
Absorption Rate

As we head into the summer selling season here in Big Bear the market overall, so far at least, has been able to absorb all this new inventory at a respectable pace. But, with the significant decrease in the absorption rate from March to June, primarily caused by the dramatic rise in number of listings, it will be interesting to see if this will continue to be the case.

Stay tuned, and until next time, all the best and happy hunting. Please do let me know if you have questions on any homes you see for sale here in Big Bear, or your homes current value given the recent appreciation we have experienced. THANKS!

By Mike Sannes, Big Bear Real Estate - The Mike Sannes Team, October 9, 2016

Thanks for checking in with us regarding the Big Bear real estate market. Let’s get right to it.

The 3rd quarter of 2016 is now in the books, so let’s take a look at the current "state of the market" as we prepare to slide into winter. There are currently 527 active residential listings on our Big Bear MLS and, as there are 197 homes currently in escrow, that equates to 4 months of inventory based on a typical 45 day closing.

My How Times Have Changed

The days of the ‘distressed market’ in Big Bear have passed: only 1.3% of our active inventory is ...continue reading

By Mike Sannes, March 10, 2016

Thanks for checking in with us regarding the Big Bear real estate market. Let’s take a look at the start of 2016.

Residential Sales by AreaResidential sales in Big Bear jumped 3.2% in January compared with the same month a year earlier, and 6.5% year-over-year. A boost in sales in Big Bear City (up 43.8% compared to January 2015) contributed the bulk of this increase. In January, 66 homes closed escrow up from 62 in January of 2015. However, January 2016 sales are down 43% from December 2015, when 115 homes closed escrow. That said, it is typical for sales to slow in the winter months here in Big Bear. ...continue reading

By Mike Sannes, February 26, 2016

As 2016 is now well underway, let’s catch up on what transpired in the Big Bear real estate market last year and what that tells us about what to expect for 2016.

Big Bear Real Estate - Monthly Residential Sales
Monthly Residential Sales in Big Bear Valley

The real estate market in Big Bear fared well in 2015. We saw a surge in demand as, aside from January and October, every month of 2015 saw more residential closed sales than the same month a year prior.

...continue reading

By Mike Sannes, March 18, 2015

Hello and thanks for checking in with us regarding the the Big Bear real estate market. The beginning of a new year is always an interesting time for Big Bear real estate. How we start the year often lends insight into where we might finish and what to expect in between.

A Tale of Two Months

This year started as a tale of two months in stark contrast. The Big Bear real estate market finished strong in 2014. The average price of homes in Big Bear was up 9.8% last year compared to 2013 (The number of closed sales, however, was off by 13.7%.) ...continue reading