Big Bear Real Estate Statistics, Sold 2011 vs 2012
In 2011 we had 865 closed residential sales in the Big Bear MLS. YTD through today 12/29/12 our closed residential sales are 1072 this year. The average price sold went from $154,858 in 2011 to $238, 197 in 2012, that is a 53.8% increase. The average price per square foot (a better indication of price trends) has risen from $144.03 in 2011 to $146.37 in 2012, a 1.6% increase year over year.
Big Bear Real Estate Sold YTD 2012
Big Bear Real Estate Sold 2011
With only 380 active listings in the Big Bear MLS, and 97 closed sales in the past 30 days we are now at an inventory level with 3.91 months of supply. If this trend continues in the new year, prices should begin to rise.
92315 Foreclosure Trends
More homes are being sold in less than a month according to the latest edition of the Realtors® Confidence Index report than was previously the case. Approximately a third of properties were on the market for less than a month when sold, and 58 percent were sold within 3 months.
Conversely, 24 percent of homes were on the market 6 months or more when sold, lower than a year ago.
Many sellers that list their home for sale in the Big Bear area get a raw deal from their listing agent.
1. Listing with an out of the area agent gives you a small chance of being shown. Agents from out of the area list homes in Big Bear in the So Cal MLS, but not the local Big Bear MLS. Most homes sold in Big Bear are represented by a local Big Bear agent and are listed in the Big Bear MLS. Acces to your home may require a phone call or appointment. If the agent from out of the area has made it to Big Bear to put on a So Cal lock box, it isn’t programmed for the local agents MLS key.
2. Listing with the wrong local agent will give out of the area agents less motivation to show your home. Some of Big Bear’s local agents will offer less commission to agents through the So Cal MLS, than the local MLS. So, an out of the area agent may only see the commission offered at 2% and the agents that are local may see a 3% commission.
3. Does your listing agent syndicate to sites that promote your home, or do they keep the listing out of the hands of sites that could help sell your home?
4. Does your listing agent have professional photos taken of your home for display on line? We are still seeing photos taken from cell phones and posted in the Big Bear and So Cal MLS. In this day and age, photos are the new open house. The maximum number should be uploaded and they should be a high quality representation of your home.
5. Does the description tell potential buyers the truth, or just what everyone wants to hear? An example of this is: I see listings that are over 5 miles from Big Bear Lake that state “Near the Lake”, or homes on 2500 square foot lots that state “Secluded Setting”.
6. Is your short sale priced well below market value? Listing short sales below market value gives the consumer miss-information, and is damaging to the overall market. Banks are not inclined to accept offers through short sale that are below the true market value. Banks will do an appraisal or BPO to establish that the short sale offer is not shorting them on the payoff any more than the market dictates.
7. Is your home easily accessible and show ready? I don’t understand why agents will list homes and not install a lock box or give access. They also fail to put up yard signs and insert photos of the home. As a seller, you only get one chance to make a good impression, and failure to prepare the house, photos and access will kill the buzz of your new listing.
If you would like to list your home with an agent that truly markets your home, please give me a call.
Steve 909 725 5889
Myth #1: The homeowner must fall behind on mortgage payments in order to qualify for a short sale.
Debunked: Years ago this may have been true, but not in 2012.
- A financial hardship must exist, such as the ARM (Adjustable Rate Mortgage) increasing in monthly payments.
- Loss of job or income.
- Health or medical issues.
- Extraordinary loss in home value (which may be considered a hardship).
Note: Agents should not advise a homeowner to miss a mortgage payment.
Myth #2: Banks would rather foreclose on a property than approve a short sale.
Debunked: Many still believe this myth to be true, but more accurately, banks would prefer not to foreclose on a property due to the $50-70k it may cost the bank per transaction. Banks lose less money on a short sale than on a foreclosure.
Note: In California, some lenders may pay owners as much as $25,000 to opt for a short sale.
Myth #3: Homeowners must be pre-approved by their lender to be eligible for a short sale.
Debunked: Absolutely not true. By and large, most lenders will consider short sale offers. However, each lender may have unique and specific processes to follow, from listing the home to the acceptance of a short sale. Bypassing any part of this process may result the sale not closing, so be sure to follow each lenders’ processes closely.
Myth #4: Short sales never close.
Debunked: Obviously not true. In some areas of the U.S., nearly 50% of all closings are considered to be “distressed” properties, meaning REOs and short sales.
Myth #5: Short sales take months (and months) to close.
Debunked: The short sale processes must be learned. Once mastered, it may not be uncommon to close a short sale in 30 days. However, certain idiosyncrasies may slow the process and each lender presents their own unique set of specific challenges. No two short sale transactions are identical.
Myth #6: Damage to the homeowner’s credit standing is comparable in a short sale and a foreclosure.
Debunked: In many cases, credit repercussions and deficiency protections are more damaging with a foreclosure. Short sale transactions can often lead to faster financial recovery for the homeowner and should be carefully considered.
Note: If the homeowner missed no mortgage payments, they may be eligible to finance the purchase of a home immediately following a short sale transaction.
Myth #7: Following a short sale, the homeowner will be ineligible to purchase another property for the next 5-7 years.
Debunked: Not true. Using conventional lending guidelines, some consumers may obtain a Fannie Mae backed mortgage a short 24 months after the close of their short sale.
Myth #8: After a short sale transaction, the homeowner will receive a 1099 and be forced to declare the loss as income.
Debunked: The owner may indeed receive a 1099, but due to the 2007 Mortgage Forgiveness Debt Relief Act, among other considerations, the homeowner may not owe any taxes on their transaction.*
Note: This Act is due to expire at the end of 2012.
Myth #9: The lender will sue the homeowner after the close of a short sale (or foreclosure, or deed in lieu of foreclosure) for the deficiency.
Debunked: California has certain anti-deficiency protections in place for short sales and foreclosures, depending on the circumstances.*
Myth #10: As an agent, I don’t need additional training to learn all of the ins and outs of the short sale process. And if I wait long enough, the market will recover so I may not need to deal with short sales at all.
Debunked: How long are you willing to wait? Based on the most recent housing reports, home values are still falling. Hopefully, 2012 will see the bottom of the housing market but price recovery may continue to take some time.