In my part of the country, many professionals are speculating that we are a year or so off on hitting the bottom. Every time it seems that things are starting to get better, another wave of foreclosures hit the market extending the inventory from 11 months to 15 or more. In Stockton, national figures assume that 1 in 30 homes are bank owned.  That is just under 4 times the national average. There were almost 1000 homes put up for auction last month in Modesto, alone.

With almost every home being listed in some state of foreclosure or being a short sale, it is very rare to see active listings that are not bank owned. However there are signs that we are nearing the bottom. Investors are starting to enter the market and are buying homes at low prices. There are bidding wars for REO properties, above asking price. In fact, the majority of homes that are listed are now selling above the asking price. These signs show that a bottom is going to be occurring in the California region in the near future. The big question is when will this happen? My guess is within the next year, but I also realize that many parts of the country it could be years down the road. 

Even with the wave of foreclosures, properties are selling quickly and there is renewed hope that a bottom will be here soon.