I sell real estate in Colorado. I had a listing in the foothills that had languished for months. Suddenly the showings picked up and then 3 offers came in over a two day period and the house sold. I just wrote an offer for a buyer on a home that had been on the market about 10 days. Two other offers came in, and we were lucky to get the deal. I am hearing similar stories from other agents.
On many 3000+ sq ft houses I'm seeing very low prices, agent hoping for a bidding war. Any agent can generate a bidding war by pricing under the comps.
Many houses getting 5 or more offers.
Still many short sales and foreclosures coming feeding the supply side, but if the buyers continue, the prices may be level.
Foreclosures forcast to come for at least another year.
People waiting to save another 15-25,000 good luck and go for it! Waiting to save $100 a month on payment, maybe.
Here's another issue with new housing tracts in CA. The typical property tax in CA is 1.1-1.3% because of proposition limits. However, the new developments usually have 1.5-2.2% because of special assessments to pay for schools, parks etc. Could have a $1,100 a month mortgage and a $500 a month property tax.