I specialize in working with real estate buyers in Big Bear Lake, CA where 2nd homes in a resort town makeup a majority of our market sales.
This is an interesting article I came across with some insight of what we may expect for this 2011 real estate market.
In the article, Tara-Nicholle Nelson has put this in four categories.
1. Prices and mortgage rates will stay low in most areas.
This is good news for Buyers! This formula is perfect for the lowest monthly payment and will help Buyers have a chance to get in on this market while it lasts.
2. Loan guidelines will tighten up and down payment and loan costs may rise.
We have already seen this take effect since the market has dropped and lenders had to get more realistic on what people can really afford. In Big Bear Lake, a second home is going to require 20% down minimum most of the time. The 10% down is more difficult to obtain and requires Private Mortgage Insurance under most circumstances. Fannie Mae owned properties with HomePath financing allow for 10% down second home loan with no PMI costs. Loan costs have directly been affected with higher title insurance, appraisals and other costs across the board. When you begin your loan process, make sure you get a “Good Faith Estimate” which computes your costs up front, so you know what you will be looking at for your closing costs.
3. Condos will become even more difficult to buy.
This is new to me, but makes total sense. In Big Bear Lake, we only have a handful of condo complexes and they make up a very small percentage of the residential sales. This is one more element to consider in your equation for purchasing.
4. Conservative buying will be the name of the game.
Over the past decade and real estate boom, the bigger and best was considered for lifestyles across the United States and some areas of Big Bear Lake. If this is what you are looking for, there will be plenty of good values available. However, the trend is leaning towards…”What do we really need?”.
Whatever your personal needs, wants, and desires are in a home it looks like we will have another good year in 2011!
Patty Simonek
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