The number of homes for sale in Big Bear continues to stay remarkably low while sales have continued to increase. The basic laws of supply and demand dictate that when supply is low and demand is high, prices are likely to rise. And that is exactly what we are seeing here in the Big Bear real estate market!
As of today, there are just 490 homes for sale in Big Bear per our local MLS. Comparing that to inventory numbers over the past few years, we see that August of 2012 had an average of 559 homes for sale and August 2011 saw a high of a whopping 834 home for sale in Big Bear. So from just two years ago, we have seen home inventory in August drop by over 40%!
While the number of homes for sale has fallen dramatically, we have seen the number of homes being sold rise consistently. In July of 2011, there were only 64 homes sold. Last July saw 102 sales while this July had 112. So since 2011, purchases of Big Bear homes have risen by 75%.
Over the past two years, with the number of homes for sale dropping by 40% and the number of home sales increasing by 75%, we have seen market forces turn the record declining market into an recovering appreciating one. With sales still climbing and inventory of homes still notably low, I would expect there to be continued appreciation moving forward in 2013 and beyond.