With the new signs of economic recovery, we are seeing large amount of solid buyers/investors returning to the market with 20% to 50% down payment to look for bargains.

The wave of purchase starting in March is causing a huge reduction of available homes for sale and subsequently driving the market price upward rapidly. Inventory is at all time low. Some cities such as Chino Hills and Phillips Ranch are having inventory level below one month supply.

The market frenzy is further indicated by multiple offers on the same home driving purchase price upward to as high as 10% more than the asking price.

Last week in Diamond Bar, a bank owned property on Silver Hawk received 30+ offers within 2 days it was listed for sale. According to the listing agent, bank chose an offer with offer price substantially above the asking price and had all the contingencies removed to guarantee their purchase.

Because of the bidding frenzy, it is common to see buyer submitting offers to multiple homes to ensure their success in purchase a house. If their offers get accepted by multiple homes, they will pick the one they like the most to purchase.

Due of the low inventory level, we are also seeing seller receiving multiple offers on the same house. Since buyers are also making offers on multiple properties at the same time, it is wise for seller to wait for couple of days prior to open escrow to make sure that the buyer is sincere enough to go forward with the purchase.