The Top 5 Benefits of Investing in Big Bear Lake Real Estate
The Top 5 Benefits of Investing in Big Bear Lake Real Estate Big Bear Lake, located in the San Bernardino Mountains of Southern California, is a popular destination for vacationers and real estate investors alike. With its stunning natural beauty, diverse recreational opportunities, and strong sense of community, it's no wonder that many people are considering investing in Big Bear Lake real estate. In this blog, we'll explore the top 5 benefits of investing in this unique mountain town and help you to decide if this is the town for you!Benefit #1: Big Bear Lake Real Estate has a strong rental demand One of the key benefits of investing in Big Bear Lake real estate is the strong demand for rental properties. Located just a few hours from major cities like Los Angeles and San Diego, Big Bear is a popular destination for weekend getaways and extended vacations. Whether you're interested in renting out a vacation home, a log style cabin, or a lakefront home, you'll find plenty of eager renters in this popular mountain town.Benefit #2: Potential for appreciationIn addition to strong rental demand, the real estate market in Big Bear Lake has shown potential for appreciation over the years. According to data from the Big Bear MLS the median home value in Big Bear Lake has increased by approximately 25% the last 2 years, (comparing Dec 2020 to Dec 2022). Once we get through the shift they anticipate the values to increase at 3-6% a year. This makes Big Bear Lake a potentially attractive option for real estate investors who are looking for a property that has the potential to appreciate in value. (Don't forget you can rent it out while gaining that equity!)Benefit #3: Diverse options in Big Bear Lake real estateOne of the great things about investing in Big Bear Lake real estate is the variety of options available. Whether you're looking for a single-family home, a condo, or a vacation rental, you'll find a wide range of properties to choose from. This diversity allows investors to find a property that aligns with their investment goals and preferences. The different options provides more opportunities for everyone, including first-time home buyers and investors who have been in the game for years. Benefit #4: Year-round appealThe Big Bear Valley is a year-round destination, with a wide range of recreational activities available throughout the year. In the winter, skiers and snowboarders flock to the area to hit the slopes at Big Bear Mountain Resort. In the summer, visitors enjoy hiking, biking, boating, and fishing in the beautiful mountain setting. This year-round appeal can make it easier to rent out a property in the area, as there is always something to do and see in town. Lately, Big Bear has become a popular summer destination (we are more than just a winter town!) with all the events that the city has been providing including the Big Bear Chili Cook-Off, Yoga Retreats, Spartan Race, Tour de Big Bear, etc. Benefit #5: Mountain living lifestyle One of the unique aspects of investing in Big Bear Lake real estate is the opportunity to experience the mountain living lifestyle. Nestled in the San Bernardino Mountains, Big Bear Lake offers a peaceful and serene setting that is unlike any other. With its stunning natural beauty, clean air, and abundance of outdoor recreational activities, living in the mountains can be an incredibly rewarding experience.In addition to the natural beauty and recreational opportunities, Big Bear Valley also boasts a strong sense of community. With its small-town charm and friendly atmosphere, it's easy to feel connected to your neighbors and to the natural surroundings. This sense of community can be a big factor in attracting renters and potentially increasing property values. Whether you're looking to retire in the mountains, invest in a vacation rental, or simply escape the hustle and bustle of city life, investing in Big Bear Lake real estate offers the chance to experience the unique and fulfilling lifestyle that mountain living has to offer.
Selling Your Big Bear Lake Home This Winter
Top 3 Questions About Selling Your Big Bear Home This Winter There’s no denying the housing market is undergoing a shift this season, which may leave you with questions about whether it still makes sense to sell your Big Bear home. Here are three of the top questions you have been asking – and the data that helps answer them – so you can make a confident decision when selling in the mountains. 1. Should I Wait To Sell my Big Bear Home? Even though the supply of homes for sale has increased in 2022, inventory is still low overall. At the time of this writing we have 292 homes on the market in Big Bear...we should be over 500 at this time. That means it’s temporarily still a sellers’ market. (however buyers have a lot of power in this market) The graph below helps put the inventory growth into perspective. Using data from the National Association of Realtors (NAR), it shows how far we are to changing to a buyers’ market: While buyers have regained negotiation power as inventory has grown, you haven’t missed your window to sell. Your house could still stand out since inventory is low, especially if you list now while other sellers hold off until after the holiday rush and the start of the new year. Many people want to be in before the end of the year! They’ll fall in love with the town while visiting during the holiday season and decide it’s the ideal place for them to buy. 2. Are Buyers Still Out There? If you’re thinking of selling your house, but are worried buyer demand has disappeared in the face of higher mortgage rates, know that isn’t the case for everyone, especially in a secondary and investment housing market. While demand has eased this year, millennials are still looking for homes. (especially with price points in Big Bear vs LA and Orange County) As an article in Forbes explains: “At about 80 million strong, millennials currently make up the largest share of homebuyers (43%) in the U.S., according to a recent National Association of Realtors (NAR) report. Simply due to their numbers and eagerness to become homeowners, this cohort is quite literally shaping the next frontier of the homebuying process. Once known as the ‘rent generation,’ millennials have proven to be savvy buyers who are quite nimble in their quest to own real estate. In fact, I don’t think it’s a stretch to say they are the key to the overall health and stability of the current housing industry.” While the millennial generation has been dubbed the renter generation, that namesake may not be appropriate anymore. Millennials, the largest generation, are actually a significant driving force for buyer demand in the housing market today. If you’re wondering if buyers are still out there, know that there are still people who are searching for a home to buy today. And your house may be exactly what they’re looking for. 3. Can I Afford To Buy My Next Big Bear Home? If current market conditions have you worried about how you’ll afford your next move, consider this: you may have more equity in your current home than you realize. Homeowners have gained significant equity over the past few years and that equity can make a big difference in the affordability equation, especially with mortgage rates higher now than they were last year. According to Mark Fleming, Chief Economist at First American: “. . . homeowners, in aggregate, have historically high levels of home equity. For some of those equity-rich homeowners, that means moving and taking on a higher mortgage rate isn’t a huge deal—especially if they are moving to a more affordable city.” Bottom Line Let’s connect if you’re considering selling your Big Bear home this season! To speak to a local Realtor in the Big Bear Valley, contact the Bradford King Group at (909) 683-1502.
What’s Ahead for Big Bear Lake Mortgage Rates?
Now that the end of 2022 is almost here, you may wonder what will happen next year in the housing market. You may also be wondering what that might mean about buying a home. Here’s a look at the latest expert insights on Big Bear Lake mortgage rates and home prices so you can make your best move possible. Big Bear Lake Mortgage Rates Will Continue To Respond to Inflation No doubt, mortgage rates have risen steeply this year as the market responded to high inflation. The increases we’ve seen were fast and dramatic, and the average 30-year fixed mortgage rate surpassed 7% at the end of last month. That is for a primary home. It tends to be higher for second homes and investment properties. It’s the first time they’ve risen this high in over 20 years (see graph below): In their most recent quarterly report, Freddie Mac explains just how fast the climb in rates has been: “Just one year ago, rates were under 3%. This means that while mortgage rates are not as high as they were in the 80s, they have more than doubled in the past year. Mortgage rates have never doubled in a year before.” Because we’re in unprecedented territory, it’s hard to say with certainty where mortgage rates will go from here. Projecting the future of mortgage rates is far from an exact science, but experts agree that mortgage rates will continue to respond to inflation. If inflation stays high, mortgage rates may too. Big Bear Lake is a different market than others because it’s a secondary home and vacation rental specialized area. Speaking to a local Realtor who can help you navigate this market is highly recommended. Home Price Changes Will Vary by Market As buyer demand has lessened this year in response to those higher mortgage rates, home prices have moderated in many markets too. We have seen this in the mountains as well. (We tend to lag behind primary markets. We are usually 6+months behind) In terms of the forecast for next year, expert projections are mixed. The consensus is home price appreciation will fluctuate depending on the local market, with more significant changes happening in overheated areas. As Mark Fleming, Chief Economist at First American, says: “House price appreciation has slowed in all 50 markets we track, but the deceleration is generally more dramatic in areas that experienced the strongest peak appreciation rates.” Some areas may still see slight price growth, while others may see small price declines. It all depends on other factors in that local market, like the balance between supply and demand. This may be why experts are divided on their latest national forecasts (see graph below): If you want to know more about Big Bear Lake home prices or the bottom line of mortgage rates, contact the Bradford King Group, experienced local realtors in Big Bear Valley, and get the latest on what experts say and what that means for our area. (909) 683-1502
Categories
Recent Posts
