Shortage of Homes Sparks Sales in the Valley
May 16, 2012The LA Daily News reports today that a shortage of homes for sale is sparking "bidding wars, quick sales and an investor feeding frenzy."
Reporter Greg Wilcox cites an example: A real estate agenct recently had a listing in Tarzana priced under the market at $599,000 and held a broker's open house, used to introduce other agents to the property, on a Friday morning. More than 200 people showed up and the property attracted multiple offers. It's now in escrow for $715,000.
Why the bidding wars? Simple. There aren't many homes for sale, Wilcox notes:
At the end of March there were just 1,875 houses and condos for sale in the San Fernando Valley, according to the Van Nuys-based Southland Regional Association of Realtors, a scant 2.8 month supply at the current sales pace. That's the lowest since the start of the downturn in 2007.
While there are still obstacles out there, it would appear the market is turning.