We are now midway through the winter in the San Bernardino mountains. Typically, winter is the slowest season for real estate sales up here. So, let’s take a look at what is happening in the local real estate market. The numbers are based on the Rim O’ the World Association of Realtors MLS data. This data includes all the communities on the mountain from Crestline, Lake Arrowhead, Running Springs and Green Valley Lake (including all the smaller surrounding communities).
As of February 9th, 2020, there are currently 57 residential properties listed as “Active” in the MLS. We hit an all time low of only 41 properties listed about two weeks ago. Since January 1st, there have been 35 new residential listings, but at the same time 95 closed sales (many of those were listed in 2021). The average property that sold, was on the market for 51 days, and sold for a median price of $357.14/sq foot. Looking at the same time last year, the median sales price was $276.81. That is an increase of 29% over the previous year. Last year 115 properties sold in the same time period, so 20 less this year, due to the lower inventory available to buyers.
Going all the way back to 2020, just at the beginning of the pandemic, we had 91 sales during the same time period, and the median sales price was $195.31/sq foot. That’s an 82.9% increase in two years!
Many buyers have been frustrated with the lack of inventory and the fact that virtually every residential property has multiple offers, above the list price. Some are sitting on the side line right now, waiting to see of the market comes down. Unfortunately, we don’t see a decline anytime soon. As long as the inventory remains low, it will remain a seller’s market. Interest rates remain low, but the Fed has indicated they may do anywhere from three to five rate increases this year, to try and rein in inflation. Even with potential mortgage rates increasing, they should still remain below the historic average of 6%. We may also see many of those that bought two years ago, as an investment, take advantage of the potential returns on their purchase. 82.9% returns sure beat anything on the stock market right now. Should those property owners list their home, we could see an increase in inventory, which would stabilize pricing, and get us back to our “normal” appreciation range of 5 to 7% a year.
So, for the buyers out there…hang in there. The market will adjust.
For the property owners out there…now is the time to list, if you want to cash in on your investment. Give me a call for a free evaluation.