Below is a list of everything that has sold and everything that is currently in escrow in 2008 in my area of Big Bear (Big Bear Lake, Big Bear City, Fawnskin, Sugarloaf, Erwin Lake, Baldwin Lake and Lake Williams). When I put this table together I wanted to see what price ranges were selling and what impact foreclosures were having in those price ranges....so I added the number of foreclosures in parentheses.
Price Ranges | Closed Sales (# of Foreclosures) | Currently in Escrow (# of Foreclosures) |
0 - $250,000 | 36 (7) | 44 (5) |
$250,000 - $500,000 | 22 (4) | 37 (5) |
$500,000 - $750,000 | 9 (2) | 13 (1) |
$750,000 - $1,000,000 | 5 (0) | 2 (0) |
$1,000,000 - $2,000,000 | 5 (0) | 5 (0) |
After a quick glance at the table above, it is easy to tell which price ranges are moving the best and which price ranges are impacted the most by foreclosures ($0-$250,000 and $250,000-$500,000). Yes, occasionally we will see foreclosures above the $500,000 range but we don't see them pop up every day.
Two words of advice after looking at the graph:
1) If you are seller in today's market, make sure you know what your competition is. It seems like the media has been pumping up the bank-owned/foreclosure market, so make sure you know if that is impacting the sales in your price range. You, or better yet your agent, must know the difference between a $250,000 sale and a $750,000 sale. For instance, if you are in the $750,000 market, you aren't competing against foreclosures (according to this chart). You might still have some distressed sellers in your category, but you can eliminate the fear of foreclosures ruining your ability to cash out. Your true concern should be that very little has sold in the upper end market ($750,000+ sales accounts for only 18% of the market). However, if you are trying to sell a property listed below $250,000 you must feel somewhat encouraged. 47% of all sales in Big Bear in 2008 have been in your price range. This is usually the case. There will always be more buyers at $250,000 as opposed to the $750,000 range. That's just how the numbers fall. The biggest concern for you as a seller might be the fact that the majority of the foreclosure sales are also in your price range.
2) If you are looking to buy a property over the next year in Big Bear there are lots of good values out there, not just in bank owned and foreclosure sales. Make sure you consult with a local Big Bear real estate agent who knows the market well. The market is always changing, but if you have a knowledgeable advisor by your side, you will save both time and money when it comes to finding the perfect mountain home. Feel free to contact me if I can help in any way.
;)
;)
