From Campbells Survey via Calculated Risk:
Many agents indicated an REO buying frenzy in local markets, especially California. “Entry level REO’s are taken by the storm! Many multiple offers!” exclaimed a California agent. “Low inventory and high demand are resulting in 20-60 offers on most properties in the entry level to moderate price points. First-time homebuyers have difficulty competing with investors and high down-payment buyers,” reported another real estate agent located in California. “Banks and listing agents are pricing these REO’s at liquidation prices to encourage a bidding war and it’s working,” wrote a real estate agent located in Florida.
I knew demand was strong, but 60 offers per foreclosure! Wow.
Dr. Duru