How our mountain real estate market will fare in our Spring selling season will likely set the tone for the balance of the year. The mountains Spring selling season runs from mid April to June.
First quarter statistics show that home sales in 2012 vs. 2011 were up mountainwide 22% vs. last years figures. There were a total of 191 home sales in 2012 vs. 148 in 2011. Lake Arrowhead experienced a 34% bump in home sales recording 86 Home Sales in 2012 vs. 64 in 2011.
The magic question is will this trend continue... My prediction is that we will likely see the market continue to recover with respect to the number of home sales, but we are still in for a wait with regard to increased values and sales prices.
The current surge in sales activity is fueled at the low end where over 1/2 of all sales a total of 116 out of 191 were under $200,000. The over $500,000 market on the mountain is the most challenged sector of the market where we saw only 14 recorded sales for the first 90 days of the year. There are currently 118 active listings over $500,000 on the mountain. Having only 14 of those listings sell is a tell tale indicator that the recovery at the upper end of the market hasn't quite hit yet.
We are still optimistic that the top end of the market will see some gains in 2012 as sellers become educated about how best to best compete for buyers in a limited buyer pool, and buyers become increasingly aware of the excellent values that are currently available.