Big Bear Lake, CA

The Big Bear Report

August 2009

A Monthly Review of the Big Bear Real Estate Market

Buyer activity in the Big Bear real estate market is showing signs of strengthening. Although typical for this time of year, both pending" and "closed" sales increased last month in nearly all sectors of our market. While land sales and commercial business opportunity demand remain sub-normal, residential sales under $400,000 are the sector of the market that is getting the majority of attention. We are finding more and more sales coming from multiple bidders on bargain priced properties that push lower offers upwards, thus creating a "bidding war". Multiple offers usually signify a market in which prices are rising and buyers outnumber sellers. When the buying public perceives there are people fighting for a property, that's good for increasing demand. Regardless if it's a bank related house or not, if it's in a good area, is maintained properly and is well priced, it will attract more buyers. However, given the rampant foreclosures and low demand on higher priced homes, I feel we are not out of the woods quite yet.

Last week we have seen and heard several reports indicating we may have finally hit bottom in the housing market. Although some skeptics believe the market is "just catching its second wind" before prices decline even further, the National Association of Realtors (NAR) reported sales of new homes nationwide increased last month by the largest percentage in eight years. With the median price range in the housing market appearing to stabilize, even Greenspan feels he's "pretty sure we have already seen the bottom".

I try and maintain an attitude of optimism because I must. I'm in an industry that's performance driven. My compensation is earned when all the time and hard work is already extended.I owe it to my family, my employees and my clients to "stay between the lines" so I don't go "nutty". Like I tell my agents and staff, "keep riding your horse in the direction it's pointed". Rest assured we are going to get through this economic debacle.

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 (Office)

(909) 936-6453 (Cell)

mikedolan@bigbearproperties.com

Mikedolan.com

DRE License # 00752899

"The Locals' Choice"

If you always do what you've always done, you'll always get what you always got.

Click here to see the details on these 12 homes.

When you start your search for a second home in Big Bear you should spend some time looking at the different locations. Location drives land value and that is why the same house is worth more or less in different areas.

Lakefront homes for example have higher land values. The current land value combined with the improvements (house) establishes value. That is why a home on the lake that is functionally obsolete will still have a high value of one million dollars if it is located in a deep water location with a view.

This also explains why a beautiful home in a less desirable area may be worth little more than the building costs, and sometimes less. Land has not been selling recently because construction costs are higher per square foot than the existing inventory pricing.

Most homes that were built in the 90's for example had a building cost of less than $100 per square foot. Currently we are seeing building costs between $150 - $225 per square foot using a licenced and insured contractor.

These are the different neighborhoods in the Big Bear area, and the average price per square foot sold year to date.

• Lakefront - $516.44
• Big Bear Lake West - $227.30*
• Big Bear Lake Central - $186.41*
• Big Bear Lake East - $199.93*
• Fox Farm - $197.14
• Moonridge - $201.01
• Fawnskin - $220.82
• Big Bear City - $147.83
• Whispering Forest - $160.11
• Sugarloaf - $125.58
• Erwin Lake - $124.67
• Meadowbrook - $216.36
• Baldwin Lake - $147.66
• Lake Williams - $117.81

*Does not include lakefront home sales in these areas.

I can show you any home for sale in Big Bear.

Search the Big Bear MLS (Multiple Listing Service)

Search the Southern California MLS (Multiple Listing Service)

Steve Hirschler

Associate, The Tim Wood Group

Coldwell Banker Mountain Gallery

42153 Big Bear Blvd.

P.O. BOX 6820

Big Bear Lake, CA 92315

stevehirschler@gmail.com

909 866-3481 EXT. 217 CELL 909 725-5889

Fax 909 866-3531

http://www.stevesellsbigbear.com

Follow me on Twitter

Subscribe to "Ask an Expert, Big Bear Real Estate Blog"

Previously Posted on "Ask An Expert, Big Bear Real Estate"

The Big Bear Report

A Monthly Review of the Big Bear Real Estate Market

July 2009

For the first time in 10 months, the median home price in Southern California did not decline. The result of combining record low interest rates and the sharp decline in overall sales have given some real estate "experts" an indication that we may be close to hitting bottom. As I've mentioned in previous reports, no one can predict the bottom until we are on our way up.There are just too many variables, especially with the current administrations illusion on capitalism.

My personal observation (along with many "down-the-hill" brokers) is that sales activity at prices below $500,000 has really picked up, but that the $500,000 and up range is very soft right now. A significant factor that affects our ability to attract "upper end" prospects to areas like Big Bear and Lake Arrowhead is our regional county loan limits. San Bernardino may be the largest county in the country but we have the lowest of the conforming loan limits available, currently $417,000. Orange and Los Angeles counties are currently $729,750 and San Diego's conforming loan limit is $697,500. Perhaps we will see a "trickle" up effect as sales continue to pick up in the lower ranges.

If you think about it, the "buying public" is in the midst of a perfect storm. With the likely possibility of inflation rearing it's ugly head, it's important to remind any investor that real estate has always proven to be the best hedge against inflation. This makes investing a much more serious strategy than at any time since the depression.

Short sales and bank owned property will likely remain a fixture in the coming months and may continue to be the driving force behind keeping the median home prices soft. However, not all prospective buyers today are attracted to the inherent risk and inconveniences of buying a "bank controlled" property.

Unfortunately, it seems our personal economic survival is no longer based on the work ethic, but rather recognizing that our current administration wants to reward mediocrity at the expense of the ambitious. 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 (Office)

(909) 936-6453 (Cell)

mikedolan@bigbearproperties.com

Mikedolan.com

"The Local's Choice"

It's a good thing we don't get all the government we're paying for. Will Rogers

I think some buyers are going about the home search backwards. They seem to be caught up in the deal. Sure, the deal is important, but the biggest goal should be to purchase the right home in the right location.

In the Big Bear Valley there are many different locations to look at homes. The areas, in no particular order, are:

• Big Bear Lake West
• Big Bear Lake Central
• Big Bear Lake East (Eagle Point, Eagle Point Estates, Summit Estates)
• Fox Farm (Castle Glen and Eagle Mountain)
• Moonridge (High Timber Ranch)
• Fawnskin
• Whispering Forest
• Big Bear City
• Meadowbrook
• Erwin Lake
• Sugarloaf
• Lake Williams

(Just click on any of these to see the google map of the neighborhood)

Price is very important, but if the house is in the wrong location, you'll have a tough time selling it to the next guy. The best way to make your second home a keeper is to pick the location first.

Please give me a call to discuss Real Estate in any of these areas. As a resident since 1990, I can tell you why they all appeal to buyers with different needs.

I can show you any home for sale in Big Bear.

Search the Big Bear MLS (Multiple Listing Service)

Search the Southern California MLS (Multiple Listing Service)

Steve Hirschler

Associate, The Tim Wood Group

Coldwell Banker Mountain Gallery

42153 Big Bear Blvd.

P.O. BOX 6820

Big Bear Lake, CA 92315

stevehirschler@gmail.com

909 866-3481 EXT. 217 CELL 909 725-5889

Fax 909 866-3531

http://www.stevesellsbigbear.com

Follow me on Twitter

Subscribe to "Ask an Expert, Big Bear Real Estate Blog"

Previously Posted on "Ask An Expert, Big Bear Real Estate"