Q2 Market Report - Snow Summit
Snow Summit Area Market Trends: $0-$800,000 Price Range
Like most of Big Bear, I have broken up the Snow Summit Area Market into two segments. Up to $800,000 property value and the luxury market over $800,000. This seems to be the most accurate price range to split the market. Every three months, I will post detailed quarterly market trend graphs for each price range with a condensed but easy to understand examinations of market stats. At the conclusion of our market report there will be a total market summary. All graphs are using a parameter of: Price Range $0 - $800,000, from January 2020 to June of 2022.
Table 1 Allows us to compare the Snow Summit Area to The Big Three Areas, and the Sub Areas of Big Bear.
Graph 1 Shows what residential real estate price changes have occurred for the Snow Summit Area on a monthly basis.
Graph 2 Shows what residential real estate price changes have occurred in the Snow Summit Area on a annual basis.
Graph 1 When we use the information from Graph 2 and 3 we can see in this quarter the $696,000 price for June ranks Snow Summit in 2nd place out of 8 different categories in average price for 6/2022. And the $89,000 price increase unlike 6 of the 8 areas having a price decrease from 3 months ago is the second highest in Big Bear. But even with the large increase the Snow Summit Area still has a Gain of $101,000 over the past 2 years which ranks it 8th or last compared to the other 8 different categories.
While there will be fluctuations from quarter to quarter Snow Summit still has a good gain over the last 2 years, but I would expect this gain to be lowered over the next few quarters. . Most of the gain was in our Boom cycle. This gain will now continue to go down because we are in a down cycle and depending on the economy we will have to see how long this down cycle will last and how far prices will go down.
Graph 3 below shows us that listings are starting to go up while sales are staying as low as last quarter. This quarter we had 52 listings for the quarter with 8 sales while last year in the second quarter we had 39 listings with 17 sales. Comparing the second quarter of the last two years with the second quarter of 2020, we had 80 listings and 10 sales. But you have to remember that is when the boom just started. As you can see we are already passing last year in listings and sales. If this continues it will keep pressure on prices to continue to go down.
Graph 4 In the Snow Summit area, the sales to expired ratios are still good with sales and expired listings close to a 1:1 ratio. There will always be expired listings. And a 1:1 ratio is considered a good ratio for a stable market.
Summary
With these numbers we can say that the second quarter we have prices listings and sales about the same as last year. We know what is coming with the slow down in the economy and a rise in interest rates because of inflation. Compared to The Big Three, the Snow Summit Area rank’s 1st in average sales price for the month of 6/2022. And rank’s first in Average gain, which The Big Three all had a loss from 3/2022 to 6/2022 but even with that gain our rank in gain in price from 6/2020 to 6/2022 now comes in last.
When we compare Snow Summit to the sub areas of Big Bear we rank 2nd out of five in average price for the month of 6/2022. We rank 1st in average gain from 3/2022 to 6/2022. Even with the gain in price from 6/2020 to 6/2022 the Snow Summit Area ranks 5th or last in Annual Average Gain.
Snow Summit when compared to the rest of Big Bear is doing well and with fluctuations in the graphs I expect some of the rankings to shift down. But like the rest of the Big Bear Real Estate Market expect Prices to fall, listings to increase and Sales to go down through the rest of the year.
Snow Summit Area Market Trends: $800,000 and Up Price Range
Graph 1 shows what residential real estate price changes have occurred for the Snow Summit Area on a monthly basis. We can see in this quarter prices have fallen by $198,000 compared to last quarter. We went from $1,414,000 to $1,216,000.
Graph 2 shows what residential real estate price changes have occurred for the Snow Summit Area on a annual basis. We can see that in the last 2 years the average price has dropped $62,000. That is when the market was in a boom cycle.
Both graphs are using a parameter of: Price Range $800,000 and up, from January 2020 to March of 2022. But you have to remember that this price range has wider price swings than the 0 - $800,000 market. By looking at the graphs you can see that we can have a month to month swing of $400,000 or more for different months.
In the Snow Summit Area the second quarter of 2022 had an average price of $1,216,000 for the month of June. Usually the Snow Summit Luxury prices are in the range of $900,000 to $1,450,000, at least that is what we have been enjoying since January of 2020.
This is why if your cabin is in this price range and you want to know what your Big Bear cabin is worth, you have to get a more detailed market analysis that takes into consideration number of Bedrooms, Bathrooms, Square Feet, Lot size, Condition and Views or location.
Graph 3 below shows us that listings are starting to go up while sales are staying as low as last quarter. This quarter we had 35 listings for the quarter with 8 sales while last year in the second quarter we had 30 listings with 8 sales. Comparing the second quarter of the last two years with the second quarter of 2020, we had 21 listings and 1 sales. But you have to remember that is when the boom just started. As you can see we are at the same numbers as last year in listings and sales. Look for listings to increase and sales to decrease for the rest of the year.
Graph 4 In the Snow Summit area, the sales to expired ratios are still good with sales and expired listings close to a 1:1 ratio. There will always be expired listings. And a 1:1 ratio is considered a good ratio for a stable market.
Summary
With these numbers we can say that the first quarter had a significant drop in price. But I’ll say again you have to remember that this price range has wider price swings than the 0 - $800,000 market. By looking at the graphs you can see that we can have a month to month swing of $400,000 or more for different months. The nice part is that sales stayed at a good level. For vacation homes in a luxury market this is a nice market. In the 0-$800,000 market we would compare the big three areas of Big Bear Lake, The Total Big Bear Valley and Big Bear City. But in the luxury market I don’t use Big Bear City because of lack of sales in the $800,000 and up luxury market. So from what I can see the Snow Summit Luxury market is on par with the rest of the areas in Big Bear with steady prices even though we took a big hit in the month of June.
We now know that we are headed into a very different market. Economic data for the third quarter and beyond is all pointing to a slow down in the market. Read my post about the slow down, Selling In Today's New Market
Expect changes in the graphs for the third quarter and the rest of the year to better reflect the economy.
My opinion is that we are going to witness a more normal market. In order to get to that normal market prices may come down a little more. Cabins will be on the market a little longer. Sales will decline.