By Mike Sannes, May 25, 2014
May 2014 Market Update Hello from Big Bear and thanks for checking in with us on the Big Bear real estate market. With Memorial Day fast approaching, which kicks off our local selling season, let’s get caught up on what has transpired this Spring and what that might indicate as we look forward to Summer.
Looking at Transactions…
From a transaction standpoint, Spring is typically the "slow time" for the Big Bear real estate market and this year has been no exception. In fact, year-to-date through April vs. the same period in 2013, we are off a substantial 18.6% in total number of residential sales. Every month so far this year has seen fewer sales than the same month last year with March of this year being the slowest month for sales that we have seen since January 2012. April of this year however, did see significantly more closed sales (18% more) than March and we expect this trend, an increase in total number of sales, to continue as the months get warmer.
Looking at Prices…
Prices, however, have held. In fact, we have experienced a 6.6% overall increase in average sales price through April when compared to the same period last year. Completely opposite from what we have seen with number of sales, the average sales price has increased in every month of this year as compared to last. Furthermore, the average sales price this year through April ($264,618) is the highest we have seen in this period in five years, since 2009 when it was $273,770.
The number of listings on the market has increased substantially year over year. Currently, we have 554 active residential listings vs. 405 at this time last year, a 37% increase in supply. With there being only 94 homes currently in escrow, this equates to a 8.8 month supply; whereas, at the end of last year, we had just over 4 months of supply. This indicates a noteworthy shift in the market from what we refer to as a “sellers market” (where there is less than 6 months of inventory) to a “buyers market” (where there is more than 6 months of inventory).
For the Big Bear real estate market, the next few months will be very telling as we are currently experiencing completely different market dynamics heading into Summer than we did at this same time last year. Stay tuned and we will keep you posted.
In Summary: What Does All This Mean?
- For buyers: There are more many more homes to choose from. With prices currently in a holding pattern and interest rates still at historically low levels, it is a great time to find a great property. We have access to ALL that is for sale here in Big Bear and our knowledge of the local market will ensure you get the best house your money will buy. So let us know if you would like to set up a good time to meet or if you have questions on any you see for sale here in Big Bear.
- For sellers: The market has become increasingly more competitive, so accurate pricing and effective marketing are absolutely essential in order to obtain a good result. We are well equipped to help in both areas and look forward to hearing from you if you have questions on the market or your homes value.