Typically, the ratio of supply to demand is <3.0 in those areas with rising prices.

This implies that the ratio of supply to demand in Big Bear is too high to support an increasing price schedule. The current average ratio is 9 to 1 (9 sellers for each buyer).  The market is reacting.  As stated in the report price is now in decline at a rate slightly less than 1% per month.

As a matter of listing management,  sellers should be encouraged to reduce price as quickly as possible to avoid unnecessary equity loss.

The best method is phased reductions until showing frequency is stimulated.

Changing the ratio of supply to demand is not a property marketing issue, it is a property listing management issue.

5 new listings this week in Moonridge.

95 active listings in the Moonridge area of Big Bear.

27 Pending sales in Moonridge. 

6 Closed sales this week.

If your’re fishing for a deal on Big Bear Real Estate, you have arrived at the peak of the season. The lake has just been planted with some big lunkers. There are some great deals to be made. Most sellers are motivated and if you are going to go on a fishing trip this spring, get a guide (Realtor) that knows where the hot fishing holes are. Make sure your guide knows about all of the different varieties of fish that the lake has. When you find the perfect fishing hole, be sure to chum the water with a large good faith deposit and a prequalification letter from your lender. This will net you the best fish with the least amount of bait.

92315 Foreclosure Trends

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Foreclosure Filings—Notice of Default filings are the first step in the foreclosure process. Notice of Trustee Sale filings set the date and time of an auction, and serve as the homeowner’s final notice before sale.

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Foreclosure Outcomes—After the filing of a Notice of Trustee Sale, there are only three possible outcomes. First, the sale can be Cancelled for reasons that include a successful loan modification or short sale, a filing error, or a legal requirement to re-file the notice after extended postponements. Alternatively, if the property is taken to sale, the bank will place the opening bid. If a 3rd party, typically an investor, bids more than the bank’s opening bid, the property will be Sold to 3rd Party; if not, it will go Back to the Bank and become part of that bank’s REO inventory.

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Foreclosure Inventories—Preforeclosure inventory is an estimate of the number of properties that have had a Notice of Default filed against the property, but have not yet been Scheduled for Sale. The Scheduled for Sale inventory indicates those properties that have had a Notice of Trustee Sale filed, but have not yet been sold or had the sale cancelled. The Bank Owned (REO) inventory indicates the number of properties that have been sold Back to the Bank at the trustee sale, and which the bank has not yet resold to another party.

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Foreclosure Bids—The Published Bid is the amount listed in the Notice of Trustee Sale and is typically the balance due at the original date of sale. The Opening Bid is the bank’s starting bid at auction, and is often discounted from the Published Bid. The Winning Bid is the highest bid received at auction and reflects the amount at which the bank or 3rd party purchased the foreclosure.

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Foreclosure Discounting—This chart compares the winning Bid Amount of properties sold at trustee sale to both the outstanding Loan Amount, and the current Market Value. Banks place an Opening Bid for each property and if a 3rd Party does not make a higher bid, the property will be sold Back to Bank (REO) for the Opening Bid amount. Properties Sold to 3rd Parties will typically have Winning Bids with deeper discounts to both Loan Amount and Market Value as only low Opening Bids will attract investor interest.

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Time to Foreclose—The average number of days between the filing of the Notice of Default and the final sale at auction for foreclosure sales that occurred during the specified month. Time to Resell—The average number of days between the final sale at auction and when the property was resold by the bank or 3rd party.

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Filings By Number of Bedrooms—The number of foreclosures that have received either a Notice of Default or Notice of Sale, shown in columns arranged by the property’s number of bedrooms.

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Filings By Square Foot—The number of foreclosures that have received either a Notice of Default or Notice of Sale, shown in columns arranged by the size range of the property in square feet.

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Filings By Year Built—The number of foreclosures that have received either a Notice of Default or Notice of Sale, shown in columns arranged by when the property was built.

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Filings By Est. Market Value—The number of foreclosures that have received either a Notice of Default or Notice of Sale, shown in columns arranged by the estimated market value of the property in foreclosure.

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Filings By Loan Balance—The number of foreclosures that have received either a Notice of Default or Notice of Sale, shown in columns arranged by the balance of the loan in foreclosure.

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Filings By Loan Origination Date—The number of foreclosures that have received either a Notice of Default or Notice of Sale, shown in columns arranged by the quarter and year in which the loan was originally made.

Sales posted to the Big Bear MLS YTD for the first quarter of 2012 indicate a 8.42% increase in the number of units over the same period last year.

Active Inventory (listings) are at 5 year lows (545 units), and pending and contingent sales total 167 units. At the current rate of sales, we have just under an 8 month supply.

The average sales price is up $15,482 this year over last, but the median is down only $4,950. This is due to the high price sale that occurred on 2/6/2012 at 533 Cienega for $3,250,000.

Price differential (list to sold) is still holding at 95% of list price.

The average price per square foot sold is down $11.36. Which indicates a 7.61% price decrease from last year the same quarter.

• 112 of the closed sales were traditional sellers (54%)
• 61 of these were Foreclosures (30%)
• 33 of these were short sales (16%)