Looking at July's real estate sales numbers, you can't help but be optimistic that the turn in the market we have been waiting for is finally here! Here are the numbers on a same month comparison (July 2011 to July 2012) and year-to-date comparison. (January 1st through July 31st of 2011 compared to January 1st through July 31st of 2012)
Comparing July 2011 to July 2012
Compared to July of 2011, sales this July were up a whopping 56%, increasing from 62 to 97 Big Bear homes sold.
This July also saw an increase in both average sale price and median sale price over July of 2011. The average sale price of Big Bear homes went up 20%, from $181,676 to $219,327, while the median sale price increased 14% from $137,500 to $156,750.
The average and median price per square foot of homes in Big Bear also showed signs of appreciation with the average price per square foot increasing 8% from $132 to $144 while the median price per square foot increased 15% from $124 to $142.
Continuing the good news for the Big Bear real estate market, homes this July sold closer to list price than in last July. July 2012 saw homes sell at 95% of list price on average as compared to 94% in July of 2011.
Home inventory also remains remarkably low. In July of 2011, there were approximately 825 Big Bear homes for sale, whereas this July there were only 590. This is perhaps the most encouraging indicator that the market may be in recovery mode. With fewer homes for sale, sellers will improve their position by demanding higher prices for their properties as buyers have fewer homes to choose from.
Year-to-Date Comparison
Year-to-date, there has been a 30% increase in sales of Big Bear homes from 2011, from 411 to 534 homes sold.
The average sale price has stayed contstant at $235,000 while the median has slipped slightly from $170,000 to $160,000.
The average and median price per square foot also showed slight declines. The average price per square foot is down about 4% from $149 to $143 while the median is down 3.5% from $139 to $135.
Summary
July numbers showed good reason to be optimistic that Big Bear real estate might finally have seen the market bottom we've been waiting for. Interest rates are staying amazingly low with sub-4% interest rates being the new normal. Home inventory is way down while sales are way up. Of course there's no way to predict the future, but I cannot remember a time in the last 7 years in which I have been more optimistic about the Big Bear real estate market.