I believe it could be.
The current state of the real estate market in Big Bear reminds me of a scene in the movie, “The Perfect Storm”.
Near the end of the movie, after the fishing boat and its crew battle huge waves and horrible weather, things clear up. They think they made it through. But, the storm comes right back even stronger and eventually sinks the ship & crew.
This is similar to the current state of the real estate market in Bear. We’ve seen rough waters over the past 2-3 years, and things appear to be clearing up – sales are picking up, prices are leveling out, and inventory is going down.
But there are some big clouds on the horizon in the real estate world.
What is going to happen to these properties? I suspect nearly all will be coming on the market over the next 12 months, and that’s many more than we’ve seen so far. I believe these will continue to put downward pressure on prices, even with the huge drops we’ve already seen.
I do anticipate that this will have a bigger effect on properties priced over $350,000 as they are getting less activity currently. These properties make up 60% of what is currently for sale, yet only 22% of what is selling.
Conversely, I expect this will have less impact on those properties priced under $350,000, as they have seen a big drop in prices already, and there remains strong demand from buyers today. They make up 78% of what is selling yet only 40% of what is currently listed for sale.
By no means am I saying that this is the end of the world for real estate in Big Bear, or all sellers are going to drown. I am not trying to promote doom and gloom.
But, to deny or not be aware of what we are possibly heading into seems foolish to me.
What do you think?