March 2010 Update:
Although spring will officially arrive later this month it still feels very much like winter here in Big Bear. We have had a tremendous amount of snow this season and the inclement weather has indeed had an effect on the ability of many would-be buyers to get up the mountain in order to take a look at real estate here in Big Bear. But has this slowed down the Big Bear real estate market? Let’s take a look.
There are currently 622 active residential listings on our Big Bear MLS. This is a relatively low number and, while demand has stayed solid, well-priced inventory is increasingly scarce leading to the many multiple-offer situations we have been seeing of late. This can be frustrating for buyers and, in my last blog, I touched on best practices and what you can expect in these situations.
There are currently 119 homes under contract leading to a current absorption rate of 19%. That is a dramatic increase from what we saw this time last year and in 2008.
There have been 131 closed sales in the first two months of 2010: 46.5% were re-sales, 43.5% bank-owned and 9% short sales. In fact residential resale recordings for January of 2010, although only 53% of the ten year average, are up 39% compared to January of 2008. Amazing prices and incredible interest rates continue to drive buyer demand.
A couple other interesting stats to note: From January to February of this year the sale to list price ratio on residential properties under $250k increased from 94% in to 96% and total number of transactions closed in this price range managed to maintain its momentum and increased by 12%. Overall, the average days on market remains at 125.
In conclusion I would imagine that had the weather been more cooperative, we would have seen a larger increase in sales. That said, the numbers indicate the Big Bear real estate market has held up well through the ‘slow season’ which bodes well for a busy buying season this spring. (Side note: if you are considering selling your Big Bear home it is a great time to market. Contact me for more information or visit our page with information specifically for Sellers.)
Looking forward, the federal government has become increasingly vocal about limiting its role in the mortgage market. Right now 9 out of 10 mortgages are owned or insured by Freddie Mac and Fannie Mae. They are, for the most part, the only big buyers in the secondary loan market and it appears the government wants that to change. What does this mean for you? Many experts expect this to cause interest rates to rise significantly in the later part of this year and into next. I will elaborate more on the effect an increase in rates would have on your buying power next time. Until then, happy hunting, and feel free to contact me or visit my Big Bear Real Estate website if you are interested in what is for sale here in Big Bear. I can take the guess work out of your search and save you money in your purchase. I look forward to hearing from you!