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Shortage of homes for sale creates fierce competition (Bidding wars are back)
http://www.latimes.com ^ | 6/10/2012 | Alejandro Lazo

Posted on 06/10/2012 6:55:07 PM PDT by dragnet2

The newest problem for the slowly improving housing market isn't a shortage of serious buyers, it's a shortage of good homes.

Would-be buyers are packing open houses and scrambling to make offers on properties before they are even listed. Bidding wars are erupting.

David Dennick, who lives in Echo Park, has been searching for a home with his wife, Denise, for about two months. The couple have already bid on three properties. They are hoping to find a home for less than $525,000, which is $25,000 more than they originally had hoped to spend.

"It is much more competitive than we thought," said Dennick, standing in the entrance of an Eagle Rock open house

The much-predicted foreclosure wave that was expected to dump more homes onto the market has not materialized.

In Southern California, inventories have plunged over the last year.

The number of days a home sits on the market has also decreased, meaning properties are selling faster... number of days a home sat on the market fell to 33 last April from 43 the same month a year earlier.

Eddie David and his wife were sure they would buy a house this year.. tripped into the perplexing new housing reality. After being outbid on three different properties in neighborhoods from the Westside to Atwater Village,

there is just a lot more competition," David said. "There were multiple offers. We tried to get in on a couple other homes, and even though it had been just a week or two weeks, it was just too late."

Alex Gruenberg and his wife, Kristina, both 27, lost out on a home that ended up going for $30,000 more than they offered.

They are now trying to find homes before they are listed.

(Excerpt) Read more at latimes.com ...


TOPICS: News/Current Events
KEYWORDS: california

1 posted on 06/10/2012 6:55:17 PM PDT by dragnet2
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To: dragnet2

I’ll hurry up and buy two at way above the asking price before they are all gone.


2 posted on 06/10/2012 6:59:48 PM PDT by nicepaco
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To: nicepaco
If I could do it I would...In S. CA, homes that were going for 625k 5 years ago are now going for 475k...And the lack if inventory? If it continues, will eventually tick prices up.

Just recently, 3 homes in our area all sold within 5 weeks or so. Now, there are no homes available in our area. If they're priced right and fit appraisals, they don't seem to last long at all.

3 posted on 06/10/2012 7:07:11 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2

Well if you believe anything your read in the la times, I’ve got a couple of houses in Hollywood that I can sell you for cheap.


4 posted on 06/10/2012 7:09:52 PM PDT by JoSixChip (We had an opportunity to get Newt, but you blew it and now we get mitt.)
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To: JoSixChip
Maybe the people documented in the article are all fictitious huh?

And I guess the 3 homes sold recently in our area, were just phony props to make everyone believe sales are happening....yuk yuk..

BTW, according to the article:

The sharp drop in inventory along with rock-bottom interest rates have helped stabilize even some of the hardest-hit markets, including the Southland, Las Vegas, Phoenix and Miami.

5 posted on 06/10/2012 7:14:37 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: nicepaco

....aaaand they will throw in Brooooklyn bridge

but wait.....

load of ooooobama commmie propaganda included


6 posted on 06/10/2012 7:15:20 PM PDT by Leo Carpathian (fffffFRrrreeeepppeeee-ssed!)
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To: dragnet2

Yah sure, the housing market will recover right in time for the election.

There may be some markets where houses are moving but I’d bet they are greatly outnumbered by markets that are still in the tank.


7 posted on 06/10/2012 7:23:06 PM PDT by 43north (BHO: 50% black, 50% white, 100% RED)
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To: Leo Carpathian

Maybe things will pick up in New Jersey for ya! I’m sure that’s highly desired destination for home buyers.


8 posted on 06/10/2012 7:23:06 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: 43north

You bet there are still areas in the tank. No question.

But the fact here is, many owe more than they can sell for, so no sale...It’s a big reason for the lack of inventory and the reason why some properties which are priced right and fit appraisals, are getting multiple offers.


9 posted on 06/10/2012 7:26:00 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: JoSixChip

“”Well if you believe anything your read in the la times””
______________________________________________________

Whoops!

________________________________________________________

Sharpened interest, bidding wars send up Las Vegas home prices

http://www.lvrj.com/business/sharpened-interest-bidding-wars-send-up-las-vegas-home-prices-158053095.html


10 posted on 06/10/2012 7:33:21 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2

Any of these desirable homes located on the route of the $63 billion fast rail line from Scheisseburg to Nowhere, CA?

If so, lines to purchase must be forming even as we speak.


11 posted on 06/10/2012 7:35:15 PM PDT by SnuffaBolshevik (In a tornado, even turkeys can fly.)
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To: dragnet2

Investors are snapping up properties to rent out.


12 posted on 06/10/2012 7:36:59 PM PDT by dfwgator
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To: dfwgator
We all know their are a ton of shadow inventory

Just like unemployment number the MSM is lying again.

13 posted on 06/10/2012 7:39:13 PM PDT by scooby321 (h tones)
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To: SnuffaBolshevik

Don’t know, don’t live near that and I’m not into choo choos.


14 posted on 06/10/2012 7:41:19 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2
"Don’t know, don’t live near that and I’m not into choo choos."

If the left coast moonbats approve that debacle, choo choos will be into your wallet whether you want them there or not.

Good luck.

15 posted on 06/10/2012 7:45:04 PM PDT by SnuffaBolshevik (In a tornado, even turkeys can fly.)
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To: dfwgator

That’s happening too, but rents have shot up, so it would make more sense to buy if the price is right. BTW, if inventories remain low, prices will tick up, and those investor properties will then be sold off.


16 posted on 06/10/2012 7:46:49 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2
As we all know, real estate markets are local, and every market has a bottom. Maybe LA has hit bottom. Why not? I would still be cautious as the "next wave of foreclosures" is still a possibility with its effect of suppressing prices. But hey, nothing stays down forever.
17 posted on 06/10/2012 7:50:04 PM PDT by hinckley buzzard
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To: SnuffaBolshevik

Thanks for the train warning....I’ll look for it!


18 posted on 06/10/2012 7:50:33 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2
The much-predicted foreclosure wave that was expected to dump more homes onto the market has not materialized.

How? The state economy isn't doing significantly better.

19 posted on 06/10/2012 7:53:15 PM PDT by newzjunkey (I advocate separation of school and sport)
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To: newzjunkey
Probably because many of those foreclosed homes sold off at low prices. I really don't know to be honest.

But I do know traditional buyers will avoid the foreclosed and short sale properties. I sure would!

20 posted on 06/10/2012 8:00:13 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2

LOL! I see more evicted political regulators.


21 posted on 06/10/2012 8:00:23 PM PDT by familyop ("Wanna cigarette? You're never too young to start." --Deacon, "Waterworld")
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To: newzjunkey

Many foreclosed properties were just allowed to rot and will not be back on the market.

Foreclosures often don’t make it back anyway but I believe I read something about the gov helping the banks do this though I don’t remember any particulars.

After WW2 the bulldozers and other equipment of the SEABEES was dumped in the ocean- to keep up the market for them.


22 posted on 06/10/2012 8:01:36 PM PDT by mrsmith (Dumb sluts: Lifeblood of the Media, Backbone of the Democrat Party!)
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To: dragnet2
Prices here have doubled tripled quadrupled in the last year. Just kidding, they are up 0%.
23 posted on 06/10/2012 8:05:23 PM PDT by steve86 (Acerbic by nature not nurture TM)
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To: dragnet2

There are bidding wars, again, in the greater Boston area. The real estate market is local & the fact is some markets are starting to heat up this spring. Nice homes in my neighborhood don’t stay on the market more than one weekend & most sell for more than the asking price.


24 posted on 06/10/2012 8:06:32 PM PDT by LongWayHome
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To: dragnet2

if you think prices are good now, wait 6 months. any home is a bad buy if it is going to lose value


25 posted on 06/10/2012 8:07:44 PM PDT by paul51 (11 September 2001 - Never forget)
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To: LongWayHome
There are bidding wars, again, in the greater Boston area. The real estate market is local & the fact is some markets are starting to heat up this spring. Nice homes in my neighborhood don’t stay on the market more than one weekend & most sell for more than the asking price.

Same in this area. Here it's due to lack of inventory, real low interest rates, and the fact prices went considerably down in the past 5 years.

26 posted on 06/10/2012 8:23:35 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: mrsmith
"After WW2 the bulldozers and other equipment of the SEABEES was dumped in the ocean- to keep up the market for them."

Don't know where I read it - but someone suggested that during slow new auto markets the cars coming off of the assembly line should be taken to smelters, melted down and the raw materials used to make even more new cars. Just to keep the assembly line workers employed.

It made my head hurt thinking about it.

27 posted on 06/10/2012 8:28:38 PM PDT by SnuffaBolshevik (In a tornado, even turkeys can fly.)
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To: dragnet2

It’s very local, and not widespread. 50 miles from here prices are still dropping, or going sideways. But some areas are hot. A house on my street went for $10k over asking & sold in one day.


28 posted on 06/10/2012 8:29:16 PM PDT by LongWayHome
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To: LongWayHome

Absolutely...Location, location, location still seems to work. And one of the reasons Vegas was hit so bad. In a bad economy, people tend to gamble less, and if that’s the big draw...Same with strictly resort areas...A whole lot of people sold or lost their second homes/vacation homes, when money got tight.


29 posted on 06/10/2012 8:38:37 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2

Tourists areas get pounded in weak markets. The Vegas market was very irrational as the real estae boom peaked. They have had quite a fall.


30 posted on 06/10/2012 8:43:07 PM PDT by LongWayHome
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To: LongWayHome
Those that have little or no equity left, or owe much more than what they can sell for, for the most part, won't be selling...Hence the low inventory here and elsewhere.

You didn't mention it, but this low inventory thing here is happening in many areas, not just CA., and I would imagine for the same reason.

31 posted on 06/10/2012 8:51:07 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: LongWayHome
Our housing market was never grossly distorted like other areas of the country, so values depreciated nominally and only after other areas felt the crunch.

We're feeling it now. Prices are dropping like rocks. Homes are moving, but it's definitely a buyer's market.

32 posted on 06/10/2012 9:08:24 PM PDT by TheWriterTX (Riding the Long-Wave Economic Contraction, Baby!)
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To: dragnet2

Yup....aside from some areas, the American real estate market overall is still not healthy.


33 posted on 06/10/2012 9:33:57 PM PDT by LongWayHome
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To: dragnet2

not here in california people are moving by the groves and home values have plummeted.


34 posted on 06/10/2012 9:37:00 PM PDT by television is just wrong
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To: TheWriterTX

Overall the economy is still going sideways, at best, and a lot of housing markets are still falling. It’s going to take years to get most markests back to normal.


35 posted on 06/10/2012 9:37:12 PM PDT by LongWayHome
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To: dragnet2

The inventory of homes on the market is dwindling quickly here in the Imperial Valley in Southern Californa but if you look closely there is an enormous backlog of foreclosed properties just sitting there, not offered for sale.


36 posted on 06/10/2012 11:10:58 PM PDT by Cyman
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To: dragnet2

This is true. I’m looking in coastal OC right now. I wanted to move this summer before school starts. But there isn’t enough choice.


37 posted on 06/10/2012 11:16:28 PM PDT by Yaelle
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To: dragnet2

NJ is years from a housing recovery; construction projects were halted because of the number of homes on the market. A condo project by me was changed to a parking lot project (literally); the taxes are so high, without jobs that make them affordable, so those houses will remain empty. In the past our public sector overlords (teachers, cops, firemen) would buy them, but now they’re being laid off as well.

One thing that will hurt NJ as it adjusts to the “new normal” is that the reduced services (which are what we can afford) are quickly obvious to anyone passing through: road surfaces that resemble Mogadishu, foliage covering “STOP” signs, etc. (public works employees were cut before Obama’s preferred contributors - teachers, cops, and firemen). I recently visited some historical sites in NJ along the NY border, and was shocked by the conditions - nothing is being maintained, hours/staffing ae scaled back, etc.

Hard to attract people in this environment...


38 posted on 06/11/2012 3:06:16 AM PDT by kearnyirish2
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To: dragnet2

Whwn is the last time you visited NJ and where did you go?


39 posted on 06/11/2012 5:37:51 AM PDT by scram2
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To: dragnet2

Palm Springs/Palm Desert properties have been snapped up by Canadians the past year greatly propping up the market.


40 posted on 06/13/2012 12:18:33 PM PDT by sanjuanbob (Festina Lente)
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