The number of Big Bear homes for sale has fallen drastically since the height of the market downturn. Peaking in 2009 with over 1400 homes for sale, as of January 1st of this year the Big Bear MLS had only 358 single family residences for sale. This precipitous drop is a strong indicator of a strengthening market. Here is a look at the number of Big Bear homes for sale over the last 18 months.
Traditionally, summers are when we see the most homes for sale with the first few months of the year seeing the fewest. Taking into account the usual rise in listings this past summer, we have seen a steady decrease in the seasonally adjusted number of homes for sale in Big Bear over the last 18 months.
With fewer homes for sale and with there being a 25% increase in buyer activity over the past year, the fundamentals are suggesting a stronger than expected market recovery is underway.
But there is more good news! The number of distressed home sales - both foreclosures and short sales - are on the decline as well. For the last 6 years, Big Bear's market declines have been fueled by banks selling off their inventory of foreclosures at less than market values. Coupled with short sales, which also often sold for rock bottom prices, the overall market values declined at record rates.
But over the past 18 months, we have seen far fewer of these distressed sales in the marketplace.
In addition to a decrease in distressed sales, we have also seen banks list their foreclosures at prices that are far closer to market value. Banks are approving short sales much more often at market value as well. This is likely in reaction to a recovering market as well as increased financial stability at the banks themselves.
With fewer homes for sale in Big Bear than we've seen in well over a decade and with foreclosure and short sale inventory declining significantly as well, the Big Bear real estate market is likely to see a stronger comeback than many had expected.