See above for Big Bear number of homes for sale, how many homes have sold in Big Bear, mortgage interest rates, Big Bear median days on market, and Big Bear average days on market.
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By: Melissa McCue Jumbo loans, also known as non-conforming, are typically loans where the principal balance exceeds the conforming loan limit of $417,000 that is set by Fannie Mae or Freddie Mac, although some areas have higher limits. Jumbo loans have always carried a higher interest rate than conforming loans, until recently. In September 2013 the interest rates for jumbo loans were lower than those of conforming loans. Major news sources have analyzed the possible reasons for this occurrence, ranging from the shift showing health and stability in the market to others stating that it is a sign of instability. One article linked the decrease in rates to an increase in the sale of high-end homes, which piqued my interest as to whether Big Bear has experienced any such increase. Since the rate decrease just occurred in September, it seems it would be premature for data to indicate a solid increase. However, I decided to look at sales in different price ranges regardless of whether they are linked to the decrease in loan rates. Overall the numbers for Big Bear showed very little change in the percentage of sales from 2012 to 2013 in broad categories. For instance, sales over $500k increased just 0.47% from 2012 to 2013. However, when the price range categories are broken down into smaller increments, a larger redistribution is evident. The chart to the left shows that price ranges are shifting. As you can see, sales under $200k decreased by 8.13% while there was a closely corresponding increase of 7.42% in the $201k - $400k price range, and that trend of upward redistribution continues throughout the rest of the chart. The cause of these shifts is not apparent, but I suspect it is a combination of a market driven increase in prices meeting buyers who have increased confidence in market stability which encourages them to spend a bit more to get the homes that they want. See above for Big Bear number of homes for sale, how many homes have sold in Big Bear, mortgage interest rates, Big Bear median days on market, and Big Bear median sales price, Big Bear average sales price and Big Bear price per sq.ft.
See above for Big Bear number of homes for sale, how many homes have sold in Big Bear, mortgage interest rates, Big Bear median days on market and Big Bear Average Days on Market.
See above for Big Bear number of homes for sale, how many homes have sold in Big Bear, mortgage interest rates, Big Bear median days on market, and Big Bear median sales price.
By: Melissa McCue As is to be expected, I am continually asked questions about the health of the local real estate market. Rather than just giving the static, “The market is great!” response, I prefer to have concrete information to share because it gives my clients a clear and accurate picture of the market rather than just a vague idea or “feeling”. Many times the information that I compile is time consuming because most systems that offer automated market statistics just don’t pinpoint the exact information that I’m after. So I find myself exporting information from the local multiple listing service and diving into spreadsheets until I reach a point of clarity. Every time that I sit down to begin that task, I wonder whether the outcome will be favorable to the market. Fortunately, of late, the outcome has consistently and increasingly been good, and the 1st Quarter of 2013 is no exception. The most striking result in this short term look at the numbers is that compared to the 1st quarter of 2012, our median price is up close to double digits, at 9.68%. Just a few months ago when I gathered the 2012 year end numbers, the median price was up just 3.63%. Equally interesting, is that the number of sales in Q1 of 2013 are up 16.06% as compared to Q1 of 2012. One could look at this a slow in demand from the 2012 year end numbers, which showed a year over year increase of 28.6% in the number of sales. If I had to make an educated guess about the reasons for that, it would be two fold; first, short term numbers can show temporary increases and decreases that change over the longer term. Secondly, our inventory continues to be dismally low. There are many buyers that are well qualified and serious about buying but just cannot find a home to purchase. It is not uncommon for buyers to schedule showings on multiple properties and then have one or more of the top picks go into escrow before they actually make it up here. This shows that the good houses are selling quickly!
Melissa McCue (909) 855-4898. By: Melissa McCue Since 2008 many homeowners have delayed selling because, let’s face it, competing in a market flooded by distressed sales at rock bottom prices is certainly not ideal. Fortunately for homeowners, standard resales in the Big Bear area solidly represented the majority of transactions in 2012. The numbers are even more interesting when dissected by area, with SFR sales in Big Bear Lake (including Moonridge & Fox Farm) at almost 77% standard resale. As the number of distressed sales continues to decrease we should expect to see prices increase as they continue to become more driven by negotiations between buyer and seller, rather than being driven by lending institutions. California Association of Realtors Senior Analyst, Oscar Wei wrote that “REO properties are sold substantially below market price because they are generally not well-maintained, and may have title clearance issues that are not desirable to home buyers. Also, since banks and lenders are not in the business of property management, they try to get rid of the inventory faster by reducing prices to below-market levels.” Whether driven by the decrease in distressed sales or not, an increase in prices is already underway. The 2012 year end numbers showed a gain of 3.6% in median sales price in the Big Bear area. This is another piece of encouraging news, as it is the first price gain in the Big Bear area in five years. If you have been waiting to sell your home and think that now may be the time, please contact Melissa McCue at (909) 855-4898. See above for Big Bear number of homes for sale, how many homes have sold in Big Bear, mortgage interest rates, Big Bear median days on market, and Big Bear median sales price.
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February 2015
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