Here are last month’s statistics for the Big Bear Real Estate market. The inventory has continued to drop and, as of this morning, there are only 309 Single Family Residences left on the market! This is lower than we typically see even at the lowest point of the year (in Spring). At this rate, I wouldn’t be surprised if it drops to double digits by the end of the season! In addition, this year there is the possibility of the new tax reform plan and there are people buying in an attempt to get grandfathered in with higher interest deductions, as well as concerns about higher mortgage interest rates. Below is an excerpt from an email that we received recently from one of our national lenders:
“You have likely heard that the current administration may be reforming the tax code. Reforms to the tax code will impact many aspects of our economy. It is unknown what the final plan will include or the exact impacts it will have, but one very likely consequence of the plan, as proposed today, will be increasing interest rates on Treasury Bonds caused by shifting economic conditions, and rebalancing of cash positions held in Treasuries in the global economy.
If interest rates on Treasury Bonds increase, then mortgage interest rates in the U.S. will also increase since mortgage rates are directly impacted by rates of U.S. Treasuries.”
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Finally, the local resorts have been blowing snow all week and both Bear Mountain and Snow Summit are scheduled to open this Friday!