MAY BIG BEAR HOME SALES

Although sales continue to be below last year's levels, prices have continued to show double-digit gains.

Sales still lagged due to the poor winter snow season resulting in a 9% drop from 116 Big Bear home sales last year to 106 this year.

Despite this slowdown, both the average and median sales prices increase 22% and 15% to $363,290 and $299,250 respectively. The average and median prices per square foot rose 19% and 18% to $254 and $250 respectively.

The average days on market dropped from 106 to 79 days while the median dropped from 63 to 55.

YEAR-TO-DATE BIG BEAR HOME SALES

So far this calendar year, although Big Bear home sales are down 13%, the average and median sales prices are both up 15% to $355,140 and $295,000 while the average and median prices per square foot are both up 14% to $243 and $237.

The average days on market has dropped from 107 to 94 days while the median dropped from 67 to 63 days.

Being that our year-to-date measure now has five months of data, the accuracy of the price gains becomes quite reliable. In addition, having a four price measures showing such similar gains (all 14% or 15%), I feel that these numbers are substantially accurate. In this regard, a 15% appreciation in home values over the last 12 months is really impressive!

BIG BEAR REAL ESTATE FORECAST

Although sales are slightly down this year, the aforementioned price appreciation shows that buyers are still willing to pay top dollar for Big Bear real estate. As mentioned above, the slowdown in sales is likely to the decrease in visitors this winter due to our dry, warm ski season. With our busiest season for home sales fast approaching, I will be interested to see whether sales rebound as expected.

Regardless of whether buyer demand increases, the supply of Big Bear homes for sale is still remarkably low. April's reading showed only 333 Big Bear homes for sale as compared to last April's 379 and April 2016's 461.

Perhaps the only negative in today's market is that interest rates keep creeping up. Although still near historically low levels at about 4.7%, they are nowhere near the recent 2012 low of 3.31%.

Once again, things are looking good for the Big Bear real estate market heading into summer. I expect sales to rebound and prices to continue to rise as visitors flock to the valley to escape the heat and enjoy life on the lake and in the mountains.