A Monthly Review of the Big Bear Real Estate Market
Any story can be another story altogether. Many experts feel the U.S. economy has turned the corner due to positive indicators in the housing market. Overall residential construction supposedly jumped 23 percent (annual rate) last quarter, the first gain in nearly four years and the biggest since 1986. However, a separate report showed the sales of new homes unexpectedly tumbled in September, the first drop in over six months. Recently, a panel of economists from across the country overwhelming agreed the severe recession that started over two years ago has come to an end. According to the panel’s findings, the Inland Empire home prices rose 5.53 percent from a year earlier surprising most economists. Later in the same report it read; “After experiencing the sharpest decline in history, the median price of existing homes in California will begin a modest rebound next year”. So have we hit bottom or not?
Still uncertain, however, is whether a new rush of foreclosures could topple the housing market once again. A reporting agency indicated foreclosure filings for the Riverside-San Bernardino-Ontario market had the sixth-highest foreclosure rate in the nation (one filing for every 30 homes). Where will those buyers continue to come from? Why is the refinancing trend that’s sweeping the nation not catching on in California? What happens when the government runs out of money? After all, the Fed has been purchasing mortgage-backed securities to ease borrowing costs and the central bank plans to buy $1.25 trillion of securities through the end of March. No takers on Wall Street so let the taxpayers take all the risk. This week, Bernanke will likely repeat his promise to keep interest rates very low for an “extended period”. But what happens if interest rates begin to creep up as many experts predict?
No reason to panic. I guess we just keep a positive attitude and remind ourselves it will be our future young people that will have to deal with this mess. They won’t know anything different because, if left to our experts, “any story can be another story altogether”. Until next month...
Mike Dolan
Big Bear’s Leading Realtor
# 8 Prudential Agent Award
7 time PREA 100 Award
11 time Diamond Circle Award
2 time 5 Year Legend Award
(909) 866-6453
mikedolan@bigbearproperties.com
Mikedolan.com
DRE License # 00752899
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