As we enter the spring of 2023, it is important to have a better understanding of whether the Big Bear real estate market is currently favoring buyers or sellers. In the past, we have written about the differences between a buyer's market and a seller’s market, and with all of the turbulence in the housing market due to the pandemic, that knowledge is more crucial than ever.
What Is A Buyer's Market?
A buyer’s market is a situation in the real estate industry that favors buyers more than sellers. It is characterized by low prices, reasonable interest rates, and the power being more heavily on the side of buyers. When there is too much supply and not enough demand, then buyers tend to have more leverage in transactions.
Even though we can look at the general tendencies when trying to predict how the real estate market will move, it is always important to remember that local dynamics play a major role in what happens in every area. Not every place is going to act the same in all circumstances, although the same economic principles will be applicable in most cases. This is something to keep in mind when examining the Big Bear real estate market.
Are We Entering A Buyer's Market?
It may still be too early to conclusively say whether the area is entering a buyer's market just yet, but there are already some indications. The first sign that this might be happening is the fact that home prices seem to be decreasing. They have, at least, retreated a bit from the insanely high prices of 18 months ago. When homes become too expensive too quickly, people tend to wait for them to become more affordable again, leading to reduced demand and sellers having to accept lower bids in order to make a sale.
Additionally, interest rates remain high, but this actually causes a reduction in demand for homes and a subsequent drop in prices. Even though high interest rates are not ideal for buyers, they do make it easier for them to get deals on homes.
Lastly, the average number of days listed is growing longer, which indicates that sellers are increasingly making concessions to buyers in order to strike a deal. When buyers are able to ask for reductions in price or make sellers agree to major upgrades with the home, then it reveals that there is a strong buyer’s market in the area.
So, Is Now A Good Time To Buy A Big Bear House?
Ultimately, the decision of whether to buy a Big Bear home at this time depends on your own personal situation. It may not be the perfect time to buy, but if you need to purchase a home soon, or you need to make an investment for tax purposes, then now is a good time to start shopping. As we enter our "selling season", you'll find the most properties on the market, and therefore the most competition between Sellers, from June through September. The actual "kick-off" is the weekend of the 4th of July. From then until September you'll see the most competition, and it's possible to find a good deal on a great home. Even though mortgage rates remain high, they are worth the potential savings that can be made if you get a good price on the home itself.
The bottom line to all this is that it is not yet a "Buyer's Market" here in Big Bear. However, it is much more so than it was last year. Will that movement continue until we are in a true Buyer's Market? It might, but frankly, I'm not one who sees a big recession coming.
I believe we're in a healthy "market correction" and that we are probably near the bottom of that correction. It could keep going for another year or so, but it just as well might not. What that means is your personal situation may be the most determinant factor. As we said before, if you have some serious motivation to purchase now, then now may be the right time for you. If you don't have that kind of motivation, then waiting to see the way the next movement goes might be your best move.
Just don't wait too long. Trying to pick the absolute bottom of any market is usually not a smart move. It can just bounce right away from you. Make your decision on what's best for your personal situation right now. Trying to "trade" the real estate market like you would stocks or options is usually not a winning move.
If you're thinking about buying a property in Big Bear and want to make sure you make the right choice, then feel free to reach out to Bruin Trojan Realtors. We're committed to helping you find the right property for your needs and dreams, so any questions you have about the local real estate market are welcome. Send us an email at bruintrojanrealtors@gmail.com, call us at (909) 585-4991, or text me directly at (909) 585-5072, and we'll get back to you as soon as we can. With over 45 years of experience in the local market and being true locals of Big Bear, whether you're buying or selling, we can help you make your real estate dreams a reality.
No One Knows Big Bear Real Estate Better! Trust, Knowledge, Experience, and Professionalism You Can Count On!
Get Your Bruin Trojan Realtors Buyer's Guide
If buying a Big Bear home might be in your future anytime soon, a great place to start is by grabbing yourself a copy of our Bruin Trojan Realtors Buyer's Guide. It will tell you all about me, my team, and how we can help you through the purchase of your Big Bear Home.
To get your copy of our Buyer's Guide, CLICK HERE!
