Feature Article
Arrowhead Bounces Back
(Published in Inland Empire Magazine: "The Big Bounce" July 2004)
For decades, Lake Arrowhead has been the resort of choice for southern Californians who want a taste of natural beauty, not too far from the city. The lake always exuded an idyllic charm that was irresistible. After a long work week, weary flatlanders would jump in their cars and head for the hills —where they could gaze on silver-blue water and listen to the wind in the pines.
Then came the fires of 2003. Three-quarters of a million acres of forest were consumed in a matter of days. 3,500 homes destroyed. The idyll had become a nightmare. Residents and business owners faced a hard question: Could Arrowhead recover?
In 2004, the lake community has bounced back—with a vengeance.
“Bounce back is the word,” says Lewis Murray, Executive Director of the Lake Arrowhead Communities Chamber of Commerce. “It’s been kind of phenomenal. The fear that everyone was going to put their houses up for sale and move away never materialized.” Indeed, home prices in February 2004 jumped 32.6 per cent, over the same period a year earlier. That echoes the trend in California generally. But most houses in the mountain community are second homes. Since these purchases are discretionary, the prices are more volatile. They move up faster than the general housing market — and dive faster when things get shaky.
Things almost got shaky after the fires. According to Bob Foshee, owner of Century 21 High Country, “At first there were a few bottom feeders; people who thought they could come up and steal something. Once we got rid of most of those, people realized that sellers were not panicking.”
Ironically, Lake Arrowhead’s natural calamities have also been a source of blessing. One unexpected windfall, according to Murray: “A big influx of tree-removal companies.” The fires finally awoke government officials to the risks of leaving dead trees standing. So, they’ve brought in crews to remove them. “I’m sure they’re impacting sales in a positive way. They’re eating in restaurants; they’re spending the money they made here in town.” And they need places to live. Couple that with fire victims themselves who need temporary housing, and you get soaring rental rates.
There are also larger forces at work. High gas prices and concern over terrorism are keeping vacationers close to home. And low interest rates make the payments on a second house manageable. So, for the price of an annual vacation, buyers can have their own getaway nearby—and build equity in the process.
Lake Arrowhead’s median home price in 2003 was $250,000 — a deceptive figure, since it encompasses everything from “miner’s cabins” to multi-million dollar estates. As with oceanfront property, proximity to the water determines value. Foshee explains, “You have lakefront, then you have what we call ’first tier,’ across the street, and then (properties) with lake views.”
But, there are amenities common to all: “It’s five or ten minutes to work — depending on how fast you drive. That’s kind of nice,” says Foshee.
Most flatlanders would have to agree.
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