Is it just me or is the market getting way too hot in Phoenix?

I have been working with many buyers over the last few months, who, are looking to take advantage of the sudden drop in prices around Phoenix. A few months ago you could go out on a buyer's tour and find some killer deals, and, see no other buyers anywhere. It made my clients think that we where the only ones actively pursuing purchasing a home, but, about two months ago it became extremely difficult to get a property into escrow. That is because the best properties out there are selling way too fast!

My most recent purchase contract went to a listing agent who received 33 offers on that same house. 33 Offers! I have submitted purchase contracts for the same buyer on more than 5 homes (one at a time of course) and have not been able to get one successfully into escrow. We are always getting outbid! I know that it is time to offer more(we are offering over asking price) but on average the listing agents on REO properties in Phoenix are getting at least a dozen offers on them (if they are priced right of course). My REO inventory moves too fast for the marketing to even get out there as well!

Most of these homes I am submitting offers on are priced in the low 100's and they sold only two years ago for over 200k. I figured that I would not have the only cliient interested in a given property, but, this is ridulous. I figured that once the Down Payment Assistance programs went away that the market would slow down a bit more. It turns out that the opposite was true, and, yes I know that DPA programs will not officially go away until Oct. 1st, but, over 90% of lenders will not accept an offer asking for DPA anymore. And from my understanding, almost all of these offers are not asking for DPA!

Can this continue? Surely the prices cannot stay this low and continue selling at this rapid pace for much longer, or, are the banks finally throwing in the towel and finally deciding to get rid of their REO portfolio? Either way, we seem to be as active as we where in the first quarter of 2005(which was the height of the market here), and, we have prices from before the year 2000. It is a great time to buy here in Phoenix, but, with so much competition I am afraid that it will end before those waiting on the sidelines to buy, decide to jump in. I am already calling clients who have been waiting for the market to bottom out. They can't afford to wait much longer the way this is going. Might I suggest you do the same, or, is your particular market still stagnant?

Is it just Phoenix? Or are any of you seeing it around the country? How long before the media catches on and floods the market with even more buyers? I think the REO party will have to come to an end soon for buyers, since the best and lowest priced properties out there are being quickly sold. I for one am putting the word out: The Phoenix Real Estate Market is rising fast, and, prices will probably follow as well.