Big Bear Real Estate & Properties hold Steady
Despite the problematic events plaguing the housing market over the past few years, Big Bear real estate is holding steady. This is especially true for vacation homes. The National Association of Realtors says that in spite of the stricter lending conditions which are affecting home loans, the vacation and investment housing market is showing holding power.
There are a number of buyers of Big Bear real estate who made all cash purchases and while fewer vacation homes were sold, as the job market returns, buyers will return as well. Presently, the home sales are down. Vacation home sales dropped 1.8% from 2009; however, this is not as dramatic as the 5.6% drop experienced by primary residence sales. The investment home sales were down by 7.8%. The thought behind this drop is that investors are waiting for the market to bottom out before making purchases.
The price of Big Bear real estate is down as well. The median price of a vacation home across the nation is currently $150,000. This is an 11.2% decrease from the previous year. Investment homes were 10.5% lower than 2009. In contrast, primary residence purchases were only down by 4.5%.
What are buyers of Big Bear real estate purchasing? The activity is currently focused on foreclosed properties. The number of vacation homes sold that were distressed properties was higher than those purchased by people buying distressed properties as primary residences.
In addition, there appears to be a pattern developing in the purchase of vacation homes. The primary motivation for buying vacation homes is lifestyle, while the sell of investment properties is primarily for rental income. Among both, buyers of vacation homes and investment properties, plans to use the home as a primary residence in the future is a consideration. There are 34% of vacation homebuyers who plan to use their home as a primary residence and 10% of investors are considering this option.
Another motivation for buying Big Bear real estate is the use of the home by family and friends. There were 21% of investors buying property for use by others and 14% of vacation home buyers bought property for friends and family to use.