In May 2020, our local real estate market was just beginning to feel the effects of the pandemic lockdown. Nationally, the average interest rate for a 30-year fixed-rate mortgage was 3.15 percent. Fast forward to May 2024, and the market dynamics have shifted dramatically. The current interest rate stands at 6.86 perceent, significantly impacting buyer affordability.
In Lake Arrowhead (92352), the snapshot of May 2020 shows a home inventory of 223 with a median list price of $538,992. By May 2024, the inventory shows 184 homes, and the median list price surged to $788,846. The average days on market (DOM) also dropped from 193 in May 2020 to 134 in May 2024. This shift indicates a more competitive market where homes are selling faster despite higher prices and interest rates.
In Crestline (92325), the snapshot of May 2020 shows a home inventory of 89 with a median list price of $277,277. By May 2024, the inventory stands at 86 homes, and the median list price increased to $422,346. The average DOM increased from 113 in May 2020 to 128 in May 2024. This trend shows a gradual return to more typical market conditions after the pandemic-driven volatility.
Running Springs (92382), saw its home inventory in May 2020 at 58, with a median list price of $291,938. Today’s inventory is 61 homes, and the median list price rose to $419,219. The average DOM also increased from 122 in May 2020 to 139 in May 2024, indicating a slight slowdown in the market’s pace.
In May 2020, the monthly payment for a median-priced home in Lake Arrowhead at $538,992 would be approximately $2,317. In contrast, in May 2024, the monthly payment for a median-priced home at $788,846 is around $5,183. Similarly, in Crestline, a median-priced home at $277,277 in May 2020 would have a monthly payment of about $1,191, whereas in May 2024, for a home priced at $422,346, the payment rises to $2,764. In Running Springs, the monthly payment for a median-priced home at $291,938 in May 2020 would be around $1,253, compared to $2,741 for a home priced at $419,219 in May 2024. These increases highlight how rising interest rates have significantly affected housing affordability.
The data reveals several key trends over the past four years. Inventory in all three areas dropped sharply during the pandemic peak but gradually increased as the market stabilized. Home prices have risen sharply due to strong demand and limited supply.
Despite higher mortgage rates, the market remains active, with homes selling faster now compared to May 2020. However, the increase in DOM from the previous year suggests a cooling trend as buyers adjust to the higher rates. Overall, the market remains dynamic, with ongoing demand driving price appreciation and fluctuating inventory levels.
If you’d like to learn more about the current local market conditions, reach out to Theresa Grant, Real Estate Broker (DRE #01202881), at Theresa@HomesInLakeArrowhead.com. You can also follow on social – Instagram: @theresagrantrealtor|YouTube: @theresagrantrealtor. Theresa is a Broker Associate with Coldwell Banker Sky Ridge Realty.
0 Comments