With the San Bernardino County Recorders office closed today, I was able to get a head start on running the sales numbers for the calendar year 2012. This was the year we were waiting for. There are finally some strong, definitive signs that after the worst real estate crash since the Great Depression, the Big Bear real estate market is finally seeing signs of recovering.

Average and Median Sale Price

Big Bear Real Estate Prices for 2012

Both the average and median sale prices of Big Bear homes rebounded in 2012 after 5 years of declines that resulted in an unprecedented 45% decrease in home values. The average Big Bear homes price increased by 6% while the median sale price was up 4% with the average sale price ending up at $238,142 and the median ending at $169,900. The most expensive sale of the year was a 9 bedroom, 11 bathroom, 8316 square foot lakefront log home on almost an acre closing at $3,250,000 while the least expensive sale was a small 300 square foot home with no bedroom that closed for $25,000.

 

Average and Median Price Per Square Foot

Big Bear Real Estate Price Per Square Foot

The average and median price per square foot of Big Bear homes also rose in 2012, Again, after 5 years of record declines, this year saw a slight rebound in these price measures. The average and median rose 1,5% and 4,5% respectively. Albeit these are modest increases, it is further evidence that we have may have turned a corner in the Big Bear real estate market. The highest price per square foot recorded this year was $519 and the lowest was $38 with the average being $146 and the median being $138.

 

Number of Sales

 Big Bear Real Estate - Number of Homes Sold 2012

2012 saw a continued increase in the number of Big Bear homes being purchased. With the exception of a slight dip in sales in 2011, we have seen home buying increase steadily since 2008. This year saw a more significant 25% jump in sales over the previous year. We have now seen a 60% increase in sales since the market's low point for number of homes sold in 2008.

 

Days On Market

BIg Bear Real Estate - Days On Markey 2012

The amount of time a home was listed for sale before selling, known in the real estate business as Days On Market (or DOM for short), stayed relatively stable in 2012 with the median being 77 days and the average being 128. If you were to look closer at these numbers, you'd notice that although the averages might suggest a period of 2-4 months in order to sell one's home, the reality is that the Days On Market numbers are somewhat polarized with many homes selling quite quickly (within a few weeks) whereas others are taking many more months and even years in some cases to sell.

 

Summary

With the number of homes sold increasing 25% and with all four major price indicators (average and median sales price and price per sq. ft.) all showing increases for the first time in 5 years, it appears the Big Bear real estate market has finally made the turn for the better. Furthermore, home inventory is stunningly low right now with only 374 homes for sale in Big Bear. When you consider that in 2009, we had over 1400 homes on the market, we are currently in a position where sellers are gaining the upper hand in today's market.

With the number of buyers increasing and the number of homes for sale remarkably low, the fundamentals are there for a continued market recovery. And when you consider that mortgage interest rates are near all-time lows and hovering around 3.5% for a 30 year fixed loan, I would expect 2013 to bring more good news for Big Bear real estate!