Shortage of homes creates fierce competition, says L.A. Times

Just as I've been saying and buyers have been experiencing, today's L.A. Times has a front page story about our current market, its low inventory and how wildly competitive it is.  Click here for link.  The entire article is fascinating; here are some of the more succinct quotes:

"Housing inventory has sunk to levels not seen since the bubble years. The number of American homes with a "for sale" sign hit 2.5 million in April, the lowest number for an April since 2006."

"The much-predicted foreclosure wave that was expected to dump more homes onto the market has not materialized. Fewer borrowers are entering default, and banks are better managing the properties they do have on their books."

"Also important is having enough cash to make up the difference between the negotiated price and whatever the appraised value of the home turns out to be, he said. (Lenders won't provide a mortgage for more than a home's appraised value.) Many deals these days are falling apart because appraisals are coming in low, given how many recent comparable sales have been foreclosures or other distressed properties."