Anyone following real estate lately is aware of the increasing number of foreclosures taking place. In fact it is hard to read or watch the news without coming across stories detailing the repercussions of so many loans going bad and the major impact that has had on our country’s banking system and the economy. So you might wonder, what impact has this trend had on Big Bear’s real estate market? Well, based on what has occurred so far this year, one thing is for sure, there is demand out there for reduced-price listings. However, Big Bear is primarily a vacation/second home market and bank-owned properties do not dominate nor have they completely taken control of the Big Bear real estate market as they have in many areas down the hill.
As of May 1st there were a total of 1,133 active residential listings, of those 28, or only 2.5%, were bank-owned. (Of those 28, 22 were listed under $250,000.) Of the total 170 closed sales so far this year, 22 or 13% were bank owned. And as of May 1st there were a total of 127 residential listings in escrow, (up nicely from the 106 in escrow just eight weeks ago), and of the 127, 20 or 15.75%, were bank-owned. (Also of note: Of the 22 bank-owned sales so far this year, the average days on market was 68, versus the 135 day average of the overall market.)
So, although bank owned listings make up a relatively small part of the total active inventory, they make up a much larger portion of the total homes in escrow and that is simply because banks price their properties to sell.
|(as of May 1, 2008)||All Residential Properties||Bank-Owned Properties|
|Active Listings||1,133||28 or 2.5%|
|Closed Sales YTD||170||22 or 13%|
|Listings in Escrow||127||20 or 16%|
|Days on Market||135||68|
Although there is certainly evidence of the demand for aggressively priced listings, many times bank-owned properties, upon closer inspection, do not fit the bill for many second home buyers. The typical bank-owned property in Big Bear is often in a sub-par location and often in disrepair. Whereas most second home owners are looking for an idyllic mountain setting and a turn-key investment that is ready to enjoy. However, for some, the deal is too good to pass up, even if some work is involved.
As there is increasing interest in bank-owned listings, I have added a link for you all to review on the ‘Search Big Bear MLS’ page of my website: www.RealEstate-BigBear.com.
I look forward to hearing from you with any questions and am happy to provide insight on the locations and condition of these properties. The answers are just a phone call or email away. Until next time…good hunting!
(P.S. next time I’ll cover the pitfalls of short sales…)