Due to the $8000 federal tax credit to first time homeowners who purchase their primary residences before end of the year, the demand on houses selling less than $500,000 is very high causing a short supply on this type of housing. Buyers who already know their area interests are in a stand by mode waiting for new listings to show up on the market.

Inventory level remains very low in Walnut, Diamond Bar, Phillips Ranch and Chino Hills. It is below 2 months supply in Walnut and Diamond Bar and below 1 month supply in Chino Hills and Phillips Ranch.

This posts a great opportunity for sellers who need to sell their properties due to various reasons to put the houses on the market to satisfy the huge demand generated from the $8000 federal tax credit that will be expired by the end of the year.

For million dollar home buyers, it is a totally different story. Inventory level remains high and price is very competitive. For example, this house in The Country, an exclusive guard gated complex in Diamond Bar, with spectacular city lights view and gorgeous swimming pool on 23509 Ridge Line was listed for sale for $1,490,000 in 2008 and is now listed for $999,990. We are seeing as much of 50% price decline on million dollar homes.

For buyers who need to sell thier smaller homes and upsize to a larger ones, it is a great opportunity to maximize the selling price of their smaller homes and capture the bargains of the larger ones.