The Big Bear year end numbers are ending up in a predictable  pattern.

The amount of new inventory entering the market has slowed dramatically.  Seller’s unsuccessful in 2011, for the most part, are removing their properties from the market with the hopeful expectation that the market will be more favorable in the spring of 2012.  Of course, foreclosure properties and short sale properties do not have typical sellers and will continue to be added to the inventory over the winter months.  Those properties are usually priced aggressively to compensate for long escrow periods, uncertain closings, or property condition problems.

80-100 closed units are expected in both November and December as buyer’s eager to spend the Christmas holidays push for their escrows to close in time.  However, new pending sales slow in December while the majority of people christmas shop instead of cabin shop.

To search all the available inventory that is updated several times each day visit my website and register by clicking here.

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

Now that our long winter is over…it seems like forever…Big Bear is heading into what promises to be terrific summer.  The lake is full and the snow is nearly gone.  A common comment from sellers in Big Bear is:  ” I am going to wait until spring to list my home for sale.”  Well it is now spring and there are a lot of new additions to the market… and a few that are getting a fresh look with price reductions heading into Memorial Day weekend.

First, is this Eagle Mountain Estates home first listed at $700,000.  It is now offered at $649,900.  Custom build by John Stavish for the present owner it has all the amenities you will need to enjoy your time in Big Bear.  It has 4 bedrooms and 3 baths all in over 2800 sqft of living area.  The kitchen features hardwood floors, granite counter tops, alderwood cabinets, and stainless steel appliances.  The property backs to an open reserve area for maximum privacy to enjoy the hot tub.  For more information on this property click the photo to the left.  Complete with a two car attached garage, vaulted ceilings, large windows and fireplace in the living room, stereo system wired into the kitchen, dining area, living room and back deck. In the master suite you will find a beautiful gas fireplace, jet bathtub and glassed in shower. Enjoy the views from sunny front decks and the spa on the back deck.

Another LANDMARK property that has recently been reduced is this Fox Farm property.  This property has been reduced to $849,000.  This property was offered for sale at one time for over $2,000,000.  It last sold for 1.2 M in 2001.  More importantly what it offers cannot be duplicated.  3.5 acres of mostly level land in the middle of Big Bear Valley assures you both privacy and the convenience you wouldn’t expect.  A single story spacious home that is log style is only part of the package.  The property also includes a gazebo with hot tub, 1800 dqft + barn, a 3 stall horse barn with additional tack room, and a dog kennel.  This home has been the location of a variety of events.  The home includes 4 bedrooms, 3 baths, and more.  Click the link to the right for more photos and information.

Have a terrific Memorial Day weekend.  Call us at (909) 584-2202 if we can be of help to you this weekend!

Lack of confidence in real estate is outlined in this article you can access from Yahoo news.  The negative sentiment of “most people” IS THE reason why NOW is one of the best times to buy real estate anywhere including the Big Bear Valley.  Here is why. Real Estate values follow cycles; they go up and they go down.  Recessions follow expansions. When the majority of people are negative about real estate inventory increases… prices go down.  When the majority are buying there is an increase in demand prices go up.  It is economics 101. Simple supply and demand.

During the past 30 years of my adult life I have witnessed 3 real estate recessions.  The first was on the early 1980′s, the second in the early 1990′s, and this one that started at the end of 2005.  I have observed the same mistake in public sentiment each time.  When times were good the majority of people acted as if the good  times would never end and when times are bad, like they are now for most people, the acted as if things would never get better.

Change is the one constant thing we can all count on.  Things are changing right now. For example, there is a tremendous amount of money being made in real estate right now.  The people who are making that money are what we call “contrarians”.  The act contrary to public sentiment.  They buy when the masses sell and they sell when the masses buy.  It is a formula for success that has been repeated over and over throughout history.  They think long term instead of instant gratification.

Big Bear is experiencing what I consider to be the best investment opportunity in a long time.  Individuals and families who want to enjoy the mountain lifestyle get to buy at the bottom of a real estate cycle ( it goes up from here) making experiencing Big Bear more affordable than it has been for 10 or more years.  I urge my friends, clients, and salespeople to adopt a contrarian attitude and start enjoying life and the opportunities available right now!