Greetings from Big Bear!
The Events & Activities are below.
Instead of 2 feet of snow we got about 2 inches of snow and 1.36 inches of rain so far and it is still raining. All precipitation helps our lake but not necessarily the ski slopes. It is supposed to be clearing up tomorrow for a beautiful weekend.
There are currently 400 homes actively listed on the market in all areas of Big Bear Valley. Since my last email 29 homes have sold. According to my local lender interest rates are at 4.25-4.5% if you have a credit score of 740 or higher otherwise its 5.25-5.5%. If you are getting a primary residence FHA loan rates are often better with a lesser credit score than conventional loans.
A lot of buyers are on the fence right now thinking there may be another turn in the market. I am going to share with you an article I received from Bob Bailey:
Here are four reasons why today’s market is much different:
1. There are fewer foreclosures now than there were in 2006
A major challenge in 2006 was the number of foreclosures. There will always be foreclosures, but they spiked by over 100% prior to the crash. Foreclosures sold at a discount and, in many cases, lowered the values of adjacent homes. We are ending 2018 with foreclosures at historic pre-crash numbers – much fewer foreclosures than we ended 2006 with. The second home market has not rebounded as quickly as all of SoCal.
2. Most homeowners have tremendous equity in their homes,
but Ten years ago, many homeowners irrationally converted much, if not all, of their equity into cash with a cash-out refinance. When foreclosures rose and prices fell, they found themselves in a negative equity situation where their homes were worth less than their mortgage amounts. Many just walked away from their houses. Some won’t ever be back for a vacation home. Today is different across California and here in Big Bear. Over forty-eight percent of current homeowners have at least 50% equity in their homes
and they are not extracting their equity at the same rates they did in 2006.
3. Lending standards are much tougher.
One of the causes of the crash ten years ago was that lending standards were almost non-existent. NINJA loans (no income, no job, and no assets) no longer exist. ARMs (adjustable rate mortgages) still exist but only as a fraction of the number from a decade ago. Though mortgage standards have loosened somewhat during the last few years, we are nowhere near the standards that helped create the housing crisis ten years ago.
4. Affordability is better now than in 2006.
Though it is difficult to afford a home for many Americans, data shows that it is more affordable to purchase a home now than it was from 1985 to 2000. And, it requires much less of a percentage of your income today than it did in 2006.
The market and Big Bear is much healthier than it was prior to the crash ten years ago.
Contact me to purchase a home or sell your home. Even if I am not the listing agent I can sell you any home you find available. Please use me, my family and I thank you for it!
Here are the Events & Activities: