If you are thinking of selling your Big Bear home, you may want to take a look at the absorption rate of homes that are currently for sale. This is a great way to become more informed on the local real estate market, whether your are buying or selling.
There is an easy to understand article here describing what the absorption rate is and what it means for the real estate market. In simplistic terms, it is the amount of time it will take for a specified set amount of properties to be absorbed under current real estate market conditions.
To get the most accurate reading for the Big Bear real estate market, you take the number of properties sold in the past month (more accurate than yearly) and divide that into the number of properties currently on the market for sale. Some other ways to figure out absorption rate include looking at a weekly and yearly basis. You can also tinker around with this by looking at different price ranges, locations, beds & baths, features and so on. The more you tinker, the more accurate your calculations should be for that type of property.
In Big Bear, there were 46 total residential sales in the month December 2007. Currently, there are 1139 residential homes for sale, which translates into an absorption rate of 24.76 months. Keep in mind that this assumes that no other properties will be coming on the market for sale in.
As it relates to the different price ranges and neighborhoods/areas in the Big Bear real estate market, take a look the the numbers below. The homes priced under $300,000 as well as between $500,001 to $800,000 sold the best while those over $800,000 did not. From a location standpoint, homes in Fox Farm, Whispering Forest, and Sugarloaf all sold better than Baldwin Lake, Erwin Lake, Lake Williams, and parts of Big Bear Lake Central.
Looking at the absorption rate is a good tool to use if you are thinking of buying or selling a home in the Big Bear area. However, pricing a home in Big Bear is not something that an online site such as Zillow or a mathematical equation can always answer correctly. Nothing beats the knowledge and experience that a local Big Bear real estate professional can give you.
Make sure your home is the best priced property among the competitors. Cleanliness and good curb appeal will impress buyers and agents. Don’t make it hard or difficult to show your home. Keeping these simple things in mind will help make sure that your home is absorbed more quickly than the others, and certainy before 2010!
Thanks for linking to my article about the importance of understanding absorption rates. Looking at your absorption rate charts, I can tell that the Big Bear area is firmly in the grip of a buyer’s market. Looking at your site, I can also tell that the buyers and sellers in your area will be well-served by your dilligence, and your local market expertise.
Thanks for stopping by Rich. Your knowledge & insight on absorption rates has been very helpful. Thanks again.