I’ve mentioned it here before, the lakefront real estate market in Big Bear is unique. So, when you talk about real estate in Big Bear, the lakefront market is a whole different conversation, as it should be.
Up until the latter part of 2008, the lakefront market remained somewhat insulated from the price drops we were seeing in the rest of the market. But, in 2008, the average price for a lakefront property dropped nearly 11% from 2007. Couple that with the average days on the market jumping from 132 to 188, and you can see the writing on the wall.
Even though lakefront prices were still rising in 2006 & 2007, the number of sales for lakefront properties has steadily decreased from its peak of 43 in 2005. There were 16 lakefront sales in Big Bear in 2008, down nearly 63% from the peak and 20% from 2007.
Here is a map of the lakefront sales in Big Bear 2008 (zoom out to see all of them).
Obviously, the slow down and price drops stem from the overall economy. In particular, the lack of credit available for Jumbo loans products (any loan over $500,000 in Big Bear) helped add to the problem.
What does this mean?
Even though lakefronts are the most desirable type of property in Big Bear, the right asking price is going to have a lot to do with whether or not the property sells.
That statement applies to any property that someone is trying to sell right now.
We are just heading into the Spring & Summer selling season, which is typically a good time to buy or sell a lakefront property in Big Bear. With 4 closed sales so far in the first quarter on 2008, and 2 pending sales, it looks like 2009 should be turn out very similar to 2008.
What do you think?