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Bank Owned & Short Sale Homes Taking Market Share In Big Bear

Active Listings % of Total Pending Listings % of Total Sold Listings Last Year % of Total
Mom & Pop Seller 775 83% 36 31% 534 80%
Bank Owned 69 7% 52 46% 115 17%
Short Sales 89 10% 26 23% 18 3%
Total 933 114 667

As evidenced in the table above, bank owned and short sale homes have taken a larger piece of the overall real estate pie here in Big Bear.

80% of the home sales in Big Bear for 2008 were your traditional, Mom & Pop seller.  That made sense as there was a similar percentage, 90-95%, of active listings on the market during 2008.

It was during that latter part of 2008 that we saw a jump in not only the number of bank owned & short sale homes listed, but also in the number of sales as well.  At the beginning of 2008, they only made up a small percentage of the total sales.  As we progressed through the year, they started to make up more & more every month, reaching about 20% per month later in the year. At year’s end, they comprised 20% of the total home sales in Big Bear for 2008.  They actually made up a larger amount in the months Nov. & Dec., nearly 40%, but the lower numbers in beginning of the year brought the average down.

The key figures in the chart above are the pending listings (in escrow).  We can see that even while 83% of the total active listings are Mom & Pop sellers, they only make up 31% of the total pending sales.  Conversely, bank owned properties make up only 7% of the total listings in Big Bear, but 46% of the total pending sales. And short sales make up 10% of the total residential real estate inventory, but 23% of the total pending sales.

This only proves the point even more that buyers today are looking for a deal. I think 90% or more of buyers today initially start out looking for a bank owned property.  As they see what is available, their criteria may change and they ultimately decide to buy a good deal from a Mom & Pop seller.  But, the more bank owned properties that come up, and they will continue to come up, the more the market share bank owned properties will take.

For sellers, it is important to understand that your competitors are the bank owned & short sale properties. For buyers, it is important to know that if you are looking at a bank owned property, there is a good chance you are not the only one.

These are the properties that are selling.  Why are they selling?  Price.  Mom & Pop sellers have to be able to compete to sell in this market.

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* Information courtesy of the Big Bear MLS. This includes MLS data from areas including Big Bear Lake, Big Bear City, Moonridge, Fox Farm, Sugarloaf, Erwin Lake, Fawnskin & Baldwin Lake. It does not include data from areas in the Big Bear MLS that are located outside of the Big Bear area or data on properties in Big Bear that are listed in other MLS systems.

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