As we enter what is traditionally the most active 90 days in the Big Bear real estate market it is interesting to look at what the actual sales numbers are, what they tell us about active buyers and sellers, and the chance to anticipate what the next 90 days will bring.

The market statistics to the right can be enlarged by simply clicking on the image.  Two things stand out as I review this months numbers.  The first is that the market bounced back in July after a disappointing May and June.  With the slew of bad news in the economy, the debt limit issue, and repeated negative reports on the housing market, sales continue which is great news.  Looking at the pending traditional sales there is every reason to believe that sales units will continue  above 65 units per month for the next 90 days.  We may even get to the 100 unit range.  I have added the pending short sales and conditional sales at 49 units.  Those are sales that are 50/50 on closing and often take 60 days or more to move through the short sale process.

The second trend that is a carry over from June is the high number of price reductions.  Nearly 35 percent of properties have reduced price for the past two months in a row.  Clearly a good portion of sellers are truly motivated to sell.  For this reason and others I don’t expect any increases in prices and I have not heard anyone who does except for property owners who will not sell at today’s current market value.

One of my friends here in Big Bear who works at Coldwell Banker has an interesting video entitled “What’s Selling in Big Bear?” He gives a great description of what is selling and what is not.  Three takeaways from his report are:  There is a lot of activity under $300,000 and the market over $300,000 is slow and competitive. 2.  Distressed sales only account for 45% which contradicts what I hear from both buyer’s and sellers.  3. Properties are selling on average near 100% with foreclosures selling on average 101%.  Buyer’s find their discount buying well priced properties not by making offers with steep discounts. If you are a buyer or selling agent, low offers go nowhere, insult the seller and waste time.

As always, please feel free to contact me with any questions or comments.