The low levels of inventory is really starting to be felt across the valley. I have several buyers now and we are having a hard time finding properties to consider. The number of properties going into escrow is growing. If you are seriously looking or considering purchasing property now is the time to get your cards on the table. We went through something like this back in 04/05 as things started to climb all of a sudden everyone wanted homes in the under 300K category and there was nothing left. Shifts in the market are usually six months in the making. By the time the media reports this it will already be too late.
Additionally the short sale market is changing. These homes are going to start selling faster as the banks get fully up to speed on how to process them. Already they are asking for more money on these properties and the banks have a plan to raise the value of the foreclosed homes as well. I will write more on that in the coming week.
If you are not ready to buy there is nothing here for you. However, if you are close to a decision now is the time to get in the game as the inventory keeps dropping and it is going to be much harder to get homes in the lower price ranges soon.