“All of these things are kind of conspiring to create what at some point is going to be a bottom in the market, and that might well be upon us,” said Bridges, who added that renewed consumer confidence was a major driver behind the competitive home market.
More buyers have tried to pursue the narrowing selection of homes that has shrunk locally by at least 20% in recent months, according to agents and multiple real estate listings.
Markets are most tight with moderate- to low-priced homes, or about $500,000, with some agents luring multiple shoppers with artificially low postings and forcing bidding wars that can drive up totals by tens of thousands of dollars, Realtors said.
The market for more expensive homes is not nearly as tight, as banks have adopted more stringent qualifications for home buyers, and sellers have opted to hold their properties instead of selling during the recession, said Keith Sorem, a Realtor for Keller Williams Real Estate Services.
“The only people who are selling their homes right now are people that have to,” Sorem said.
But those who are listing their homes for moderate prices are finding a lot of interest, he said.
About 150 visitors attended one recent Glendale open house, and another home in the area received 80 bids from prospective buyers, real estate agents said.
“Interest rates are what’s driving the whole thing,” said Dan Soderstrom, a Burbank-based agent for GMAC Real Estate.
Interest rates are hovering around 5% for loans in the $500,000 range, according to Bizrate.com.
More shoppers are entering the market out of fear that rates will rise, even though it is uncertain whether prices have hit bottom, Soderstrom said.
Buyers may also simply have more confidence that home prices are not going to fall, said Kendyl Young, an independent Realtor who markets homes in Glendale.
