It is the question everyone is asking, "Has the real estate market hit bottom?" If you are a buyer active in La Quinta's real estate market, you already know bidding wars are taking place on foreclosed properties and on properties being sold as short sales.
The Wall Street Journal reports that the supply of unsold homes in California continues to swamp demand. Favorable home prices and low interest rates have created bidding wars as first-time buyers compete with investors for many of the same distressed properties.
While inventory of homes for sale still outpaces demand in much of the Palm Springs area, inventory is shrinking. The California Association of Realtor's reports the unsold inventory index was at 5 months in March for California, compared to 12.2 months in March 2008.
How does a serious buyer get the property when four other people are bidding on it? Take note that many banks and sellers favor all-cash bids or offers from buyers who are certain to qualify for financing. In some cases, sellers may choose the offer least likely to fall through rather than the highest bid.
Buyers may also want to consider offering at or above the asking price of a home. If the home is extremely desirable or in a neighborhood that previously was out of many buyers' price ranges, putting in an offer slightly higher than the asking price may help to seal the deal.
To read the full Wall Street Journal article, click here.