So much has changed this year within the local Real Estate Market of the Inland Empire and High Desert with me hearing about this in other areas of Southern California as well. No one really knows if we have actually hit the bottom of the Real Estate Market here in Southern California but the market has definetly shifted over the last few months. With inventory going down in the Inland Empire and High Desert and buyer demand going up. I have seen a dramatic increase in homes that are being sold within a week of hitting the market with multiple offers definetly becoming the norm. Investors and first time home buyers are fighting over the same homes which has created a whole new dynamic to the market place.

Inventory is going down with the foreclosure moratoriums and loan modifications helping people stay in their homes and decreasing the amount of properties hitting the market. With more buyers off the fence and Investors creeping into the market to pick up homes at extemely affordable and profitable prices. Buyers are having to see alot more homes and put in alot more offers in order to purchase a home in the Inland Empire and High Desert markets. I am currently working with a buyer that I have shown at least 50-60 homes and put in about 20 offers with no deal in escrow yet. One disadvantage to this first time buyer is they are obtaining FHA financing which a lot of REO sellers would prefer not to deal with because of the length of time to close and also the lenders request to have the property in move in ready condition. Banks are electing to choose all cash offers and conventional because they are less likely to request repairs and deals are less likely to fall apart at the 11th hour. Buyers with FHA financing are now at an disadvantage because of this and are finding it harder to achieve the american dream. FHA buyers are being put on the back burner in favor of conventional financing and all cash offers.

Buyers must come in with competitive offers and they are finding out that low balling is no longer an option. I recently submitted an offer an a property that had been listed for 5 days and I was advised that I was the 41st offer on the table. WOW. I remember a few months ago listing agents were practically begging for offers now they are advising at times to not even view the home because they have enough offers on the table already. How fast the market has changed. I am beggining to wonder if we will look at this time now and see this as when the bottom hit and the recovery began.