The Big Bear Real Estate market is continuing to show signs of weakness.  Closed sales dropped again unexpectedly to 47 units in June.  We typically would expect to see an increase in closed units at this time of year.  Interestingly, the number of pending sales has increased to over 160.  Part of the reason the closed sales have not increased is that  75 percent of all the pending transactions are either short sales or REO properties.  Short sales take much longer to close than an equity seller or an REO transaction.

Bargain hunting is the rule for buyers. Short sale properties and REO’s are driving market value with Banks and distressed sellers pricing aggressively to compete for a limited buyer pool.  Equity seller’s for the most part have not been willing to compete on price.  They represent only 25% of the current pending inventory.

More disturbing from my view for equity sellers is the fact that most don’t have to sell.  And, because of that  belief they hold on too long waiting for the market to recover and continue to lose 1% of their value each month.   Sometimes that 1% in value equals 5% of their equity When confronted with the fact that NO ONE is forecasting any significant price appreciation for at least 4-5 years.  They respond with “Well, you don’t have a crystal ball.”‘

For the next few months the dynamics and attitudes of both buyers and sellers will likely remain the same.  Call me with any questions or comments at (909) 584-2202 or email me at MarkDolan@RealtyExecutives.Com

Spring has arrived in Big Bear.  Most people are aware that Big Bear Lake is full as a result of the snow and rain from this past winter.  I mean it is really,really full. When the wind is blowing hard west to east the waves break over Stanfield cut-off.  When I drove by the dam last week the water was literally full to the top of the spillways.  The summer of 2011 is going to be an epic year for summertime fun, fishing, and boating.

The Big Bear market is cyclical and a lot of things change in springtime.  A good amount of sellers who were unsuccesfull in selling their property in 2010 took a break over the winter and try again in 2011 by putting their property back on the market.  Usually with a different broker and a lower asking price.  CLick on the thumbnail to the right for a larger version of the current market statistics.

Real estate activity has picked up as the snow has melted.  My team and I are negotiating 5 offers as of today.  In addition, we have placed 12 new property listings on the market for our clients in the last 30 days.  Call us when we can be of help to you!

The Real Estate Market in Big Bear remains stable even though there is uncertainty in news reports.  Click on the photo to the left to enlarge the market statistics.

Last week a report stated property values in the largest markets could continue to fall as much as 25% and the next day a report was published showing that the market rebounded and stabilized in the 4th quarter of 2011.  It is hard to know what to believe.  However, here in Big Bear prices are still at their lowest point in over 7 years and demand seems strong enough right now to halt further price declines.

Recent heavy snow falls have given life to the ski resorts and renewed economic activity for local business owners in town.  Moderate snow fall over the entire winter made it possible for buyers of Big Bear property to look at homes with relative ease.

If you have any questions or comments feel free to contact me at (909) 584-2202.  In addition, you may find more information at a new website we have.  Check it out…. www.realtyexecutives.com/markdolan

Click on the page to the right to enlarge and view the current market statistics.

It is interesting to see the annual cycles in Big Bear repeat themselves every year.  Last year in January available inventory was in the mid-600 unit range and increased during the spring to over 900 units.  I expect that to happen again this year.

The 4th Quarter of 2010 was far better than 2009.  However, forecasts are mixed for 2011.  Most people HOPE that 2011 is going to be stronger with increasing sales and higher prices.  But, in truth most forecasts call for a 5% to 10% drop in prices NATIONWIDE in 2011.  Further, the price declines are expected with continued foreclosure activity and lukewarm buyer demand.

While Big Bear is a local market and not a major metropolitan area we are fed by the Southern California Real Estate market and economy.  Those market are surely going to effect what happens in Big Bear.

The bottom line is this: There has never been a better time to buy real estate.  If in fact the first 1/2 of 2011 is the bottom of the market, then the next 6 months will be the only opportunity to buy a Big Bear property at the very bottom of the market.

Check in with us frequently for more information!