Click on them thumbnail to the left to enlarge the current market conditions for the beginning of April 2011.  Nothing unexpected has happened so far in 2011.  I post the current conditions at the first of month to help you follow the trends as they happen.

Closed sales numbers are slightly higher than 2010.  That fact points to some stability in the market.  However, prices continue their slide downward.  Normally prices fall when supply exceeds demand.  That is not really the dominant factor right now.  The downward pressure on prices have to do with buyer expectations and fear.

There are 693 active residential properties for sale today which is healthy for the Big Bear Market.  We have had as many as 1,450 residential properties both in 1986 and in 2004.  The low by comparison is February of 2004 and 2005 when there were only 293 residential properties in all of Big Bear offered for sale.

The comments we hear from today’s buyers are that it is difficult to find a good property offered for sale.  Many are neglected or are being sold as distressed properties in “as is” condition.  But that is only part of the story, here is the most important thing we are seeing…

Buyer’s who find a property they like AND that is priced appropriately are still making low offers.  When we or the sellers provide information to establish value with sold comparables the buyer’s remain unwilling to raise their offers to full market value arguing prices are still going down so the only way they can avoid overpaying is to discount the price 5,10, or 15%.

In essence, buyer’s are creating the value declines they are afraid of.  Consumer confidence or the lack of it in real estate is the biggest challenge we face today.

I look forward to your questions or comments.  Spring is here… talk to you soon!

The forecast for the Big Bear Real Estate market  remains very consistent.  The article courtesy of WSJ that appeared in yahoo news today clarifies what to expect for the next 3-5 years…continued foreclosures in California, soft prices, and a shortage of home buyers.  Big Bear is driven by the Southern California market.  75% of our homeowners and buyers live in the five counties surrounding Big Bear.  Falling prices have caused eroding of equity.  The available buyers for Big Bear have less available cash for a second home in the Big Bear area.  Below is what the report says about California.

4. California

2010 Foreclosures: 4.08% (4th Worst) Unemployment: 12.4% (Tied for 2nd Worst) Decrease in Building Permits 2006-2010: -74.7% (6th Worst)

California’s impact on the housing market is huge. The state is the largest among the 50 in total GDP and housing units. California’s unemployment rate of 12.4% is now tied for second place with Michigan, once the jobless capital of the nation. In 2010, the state had one of the highest foreclosure rates in the country, at just over 4%. New construction has dropped off dramatically as well, with a 74 % decrease in new building permits between 2006 and 2010.

The key to word for success in real estate is value!  Seller’s who want to sell MUST price their property as the BEST value for their location and condition to be successful.  Buyer’s must choose the BEST value in order to maximize their investment.  Both buyers and sellers must work with an agent who understands the market and offers the best information and service.  There is so much information available it becomes confusing without the filter of a long term, local, professional, full time real estate agent to advise you.  Check back with us for updates on current market conditions!