The California Association of Realtors just released its 2016 housing forecast and yet another year of price gains is expected.
Statewide, the number of California homes sold this year is expected to be 6.3% more than in 2014. The C.A.R.'s forecast expects another 6% gain in home sales for 2016. Meanwhile, the inventory of California homes for sale will remain on the low side of the historical average.
As far as prices, the median home price in California is expect to rise 6.5% this year to $476,300 followed by a more modest 3.2% next year to $491,300.
These projections are fueled by the expectation of interest rates remaining historically low, albeit rising higher to 4.5%. It also is based on the forecast of the unemployment rate in California dropping to 5.5% in 2016 from the 6.3% expected for this year.
So far in 2015, Big Bear has seen a 17% increase in the number of Big Bear homes sold, well above the statewide forecast of 6.3% for California as a whole. As well, the median sale price of Big Bear homes has gone up 11% through the third quarter of 2015, which is significantly more than the 6.5% statewide projection.
I would imagine that with the improvements to our local ski resorts and village area coupled with the expectation of a snowy winter season that Big Bear will see an increase in visitors. This should drive home buyer demand higher which should result in continued price appreciation. As such, I would expect 2016 to show Big Bear's real estate market outperforming California on a whole in regards to the number of home sales and price gains.