May 2019 Market Update by Mike Sannes, Big Bear Real Estate - The Mike Sannes Team, July 5, 2019
Hello From Big Bear!
I hope the summer has been treating you well. The weather could not be better here in Big Bear (finally!) Here's a quick summary of what’s been happening in Big Bear real estate so far this year, as of the end of May.
There has been an impressive 6.1% increase in transactions (Jan - May 2019 vs same period of 2018). Low interest rates are strengthening demand and should continue to do so for at least the remainder of this year. (April, typically a slow month for sales here in Big Bear, saw a whopping 46% increase in transactions: 74 in 2018 vs 108 in 2019.)
Prices have been relatively flat (1.0% increase year over year). However, the much-improved lake level and rock-bottom interest rates make me think that we should see more appreciation in the second half of 2019 than we have seen in the first half of the year. The average price of all those sold in Q1 was $366K (In May it was $358K)
Of the total number of sales (453 homes) – 85% of those were under $500K. However, the price range between $750K - $1 million did see an encouraging 80% bump in sales from last year.
Based on a 45-day close, inventory (517 active listings) sits at just under 6 months currently, which describes a balanced market (not really a sellers or a buyers market at the moment).
With the recent increase in inventory (typical for this time of year in Big Bear), the absorption rate sits at 24% (down from 30% in winter months). This means that roughly 1 out of every 4 homes listed, is selling every month. Moonridge and Sugarloaf, however, are much hotter areas as the absorption rate there is currently 36%.
Average days-on-market is currently 106 (up slightly from 95 last year), and our current sale-to-list price ratio is 97% (down from 98% at this time last year).
I hope you find this information useful. If you, or anyone you know, is interested in buying or selling in Big Bear, or if you are just curious regarding your homes current value (FYI - Zillow is not the place to look for an accurate assessment of value for Big Bear properties), please do let me know. I look forward to hearing from you and am happy to help. THANKS!!