MSNBC.com reports that first-time buyers in some areas, especially those 
with large numbers of foreclosures, are finding that bank-owned properties are sparking bidding wars that drive up sale prices and entice investors - who often pay cash and buy several properties at once.
This information is consistent with what's going on in the Palm Springs market. Recently, clients of mine participated in bidding wars on mid-century properties:
- A mid-century foreclosure designed by Donald Wexler, was listed at $174,000. There were 22 offers on the property, and it ended up selling for $290,000
- An Alexander built mid-century home designed by William Krisel, was recently listed at $225,000. With multiple offers, the house sold for $260,000.
KEEP THIS IN MIND
• Buyers are advised to work with REALTORS® to help increase the chances that their offers are accepted on homes, particularly those that are attractive to investors. With guidance from a REALTOR®, buyers can present offers that are more likely to be accepted by a bank. REALTORS® also often have knowledge of properties that are new on the market, and may have not yet caught the eyes of investors.
• Recently enacted federal legislation designed to help people remain in their homes has slowed the flow of foreclosures into the market, lowering the inventory and increasing the demand for remaining homes. In June, C.A.R.'s Unsold Inventory Index (UII) stood at 4.1 months, compared with 7.6 months for the same time period a year ago. The UII indicates the number of months needed to deplete the supply of homes on the market at the current sales rate. Homes priced $500,000 or below had an unsold inventory of approximately three months in June. In June 2008, the unsold inventory in this price range was nearly 10 months.
To read the full story, please click here:
http://www.msnbc.msn.com/id/32011159/ns/business-real_estate/
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