With another spectacular summer behind us here in beautiful Big Bear Lake, and with home buying attention soon turning away from the lake and towards the ski resorts, let's take a look at how real estate in Big Bear is looking so far through Labor Day 2014.
Comparing sales through Labor Day 2014 to the same time period from last year, we see that the number of Big Bear home sales are still lagging while number of Big Bear homes for sale has continued to rise. But despite this, property values are showing appreciation.
Sales of Big Bear homes are down a significant 23% so far in 2014 with 606 single family residences having sold. This is 185 fewer sales than last year. Because fewer homes have been sold and thus have remained on the market, the current number of listings has risen to 687. Last year, there were 500 homes for sale at this time. So the 187 home increase in listings from last year almost exactly reflects the difference in the number of homes sold in 2013 to that of 2014.
Prices continue to show gains though. The average and median sale prices are both up 9% over last year while the average and median price per square foot is up 14% and 18% respectively.
Days on Market has remained about the same with an average of 93 days and a median of 52 days listed before pending sale. The average sale price to list price ratio is still 97% with sellers conceding 3% on average in negotiations.
Another positive sign in the real estate world has been mortgage rates. As of this weekend, the national average for a 30 year fixed conventional loan is 4.07% per CNN/Money Magazine. These rates are still near all-time lows and present a nice opportunity for buyers before rates inevitably rise.
Although the market seems to be cooling as evidenced by fewer sales and higher inventory, after a two years of a stronger than expected turn around, I think it is a good sign that the market is slowing down. The last thing we need is another real estate bubble. After exceptional low inventory and strong sales resulting in a robust seller's market the last few years, getting back to a more balance position is likely a good thing.