As mentioned in recent posts, there are signs that the Big Bear real estate market is cooling off after a 3 year stronger-than-expected run. As the number of Big Bear homes for sale increases, we are seeing the number of home sales decrease. The extent to which this is happening is not yet a concern, but rather a return to a more normal market balance.
The good news is that home prices have stayed strong in the face of these changing conditions. Take a look at price measures of the last 12 months of Big Bear home sales.
Amidst the peaks and valleys of the monthly numbers you will see a trend line showing the steady appreciation of Big Bear home prices in spite of fewer sales and more homes on the market.
The laws of real estate economics suggest that with decreasing sales and an increasing supply of homes on the market that the appreciation rate will slow. It will be interesting to take a look at things over the next few months to see if and to what extent these market conditions persist.