The San Bernardino Mountains real estate market is on the cusp of potential transformation, with several factors converging to create a unique landscape for buyers and sellers alike.
As interest rates for conventional 30-year fixed mortgages hover between 6.125 and 6.3 percent, the possibility of a half-point decrease in the coming months has sparked speculation about its impact on the local housing market.
Contrary to popular belief, historical data suggests that presidential elections have little significant impact on real estate trends, especially in the short term. According to analyses by industry experts, there’s no consistent pattern of market slowdown or acceleration in the 30 days prior to past elections. In fact, home sales have increased after nine of the last 11 presidential elections, indicating that any election-related hesitation is often short-lived.
For the mountain communities of Crestline, Lake Arrowhead and Running Springs, the more pressing factors are local market conditions and the potential for interest rate changes. The area is experiencing a delicate balance between supply and demand for certain price ranges, while others are statistically slowing. However, this equilibrium could be disrupted by a drop in interest rates, potentially unleashing pent-up demand and sparking increased competition among homebuyers.
While we are not considered a traditional suburban market, some price points are starting to see fast sales and multiple offers, most significantly in the $300k-$350k range. This suggests revived demand in the area, which could intensify if interest rates decrease. Prospective buyers should be prepared for potentially heightened competition, with multiple offer situations becoming more common.
For sellers in the San Bernardino Mountains, the combination of low inventory and the possibility of lower interest rates could create favorable conditions. Those who have been hesitant to list their homes might find the coming months an opportune time to enter the market, potentially benefiting from increased buyer interest and activity.
It’s important to note that while the broader San Bernardino County market shows strong growth, with a 12-percent increase in median sale prices from January 2019 to January 2020, the mountain communities experience unique trends due to our weather patterns, home insurance challenges, specific appeal and lifestyle offerings in each community.
As the market potentially shifts, both buyers and sellers in our communities should stay informed and ready to act. The coming months could reshape the local real estate landscape, offering a unique window of opportunity for those prepared to navigate the changing market conditions. Whether this shift will result in a sustained boom or a short-term flurry of activity remains to be seen, but one thing is clear: The mountain home market is poised for an interesting ride in the near future.
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.
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