In the Los Angeles $350k and below market, it's officially become "How Much Over Asking Do I Need To Write?"
The Los Angeles residential real estated market in the $350k and below range is on FIRE!!
Multiple offers all over the place. In general, with properties that show well and are priced fairly, it has pretty much become a factor on how much over list price a buyer needs to write in order to get an accepted offer.
Why? Because it has become common knowledge that we have hit bottom about 6 months ago. And since no one officially rings a bell when we hit bottom, buyers tend to gage the market by the level of activity.
Potential buyers who had always wanted to purchase their first home but could not afford to do so in the spikey 2004-2007 market realize that interest rates are still at a record low but have started to creep up, and price points in some areas have dropped to 2002 levels. A combination that makes it affordable for them.
Also, some sellers who have been sitting on the fence are not only now starting to feel it's OK to step into the light, but they want to take advantage of the market as well and upgrade to a newer home before the price points begin to rise significantly.
And believe it or not, those short sellers who have sold there home 2-3 years ago are now in position to buy again!
Another one of the biggest factors is that investors are out there with their cash, scooping up properties with a "buy and hold" strategy for investment/rental properties. A significant amount of these are hedge fund organizations.
This is the type of activity that is going to restore our market to a normal environment, and help bring property values into equity positions.