Bidding Wars on So Cal Homes?

The O.C. Mortgage and Real Estate Blog

Two weeks ago, an agent at Redfin, a residential real estate brokerage, entered a bid of $420,000 for a three-bedroom, 1,625-square-foot La Crescenta home outside of L.A., listed at $299,000.

When she lost the bid, she wasn't surprised. In July of 2008, this same agent had bid $559,000 for a two-bedroom Arcadia house, also outside L.A., listed by Wells Fargo for $459,900. That one received 105 bids, driving the price up to $628,000, according to Los Angeles County records. "Sellers want to generate a bidding war, and it's working," according to recent statistics!

Even with the bidding wars, prices aren't nearly as high as they were at the peak of the real estate boom. Values plummeted 31% in the L.A. metro area in 2008, according to the National Association of Realtors.

So does this mean Southern California prices have reached bottom? Maybe, but probably not quite just yet, in this one person's opinion from 25 years in the industry. On the bright side; Recent Market Activity in and of itself is showing very good signs that Californian's still believe buying a home Is The American Dream!! That ideal right there will help lead us to a stronger economy moving forward in '09 and the next decade!