Hayward CA: Extremely low inventory results in over-bidding and multiple offers

Checking various cities in the East Bay CA, to see market activity --- Alameda, Oakland, San Leandro, Hayward. And thus far, the cities I've looked into all have low inventories of homes for sale. And this partially explains why we're in multiple offers/over-bidding situations.

Here's what's happening in Hayward where we've seen 60-80 offers on bank-owned properties, and where cash is definitely king. Some buyers are actually consortiums of buyers who pooled their resources to buy properties.

Time and time again, we have found ourselves in multiple offer situations. It's almost unbelievable to conceive of this kind of buying frenzy. It's like the early 2000s all over again, albeit at lower prices.

Offer dates are set. Contingencies are being waived. Offers are for significantly over list price. Not only is preapproval letter required, but proof of funds and FICO scores are also mandated in many cases.

Buyers are stunned....they had expected a buyer's market. They expected prices to go even lower. They expected to be able to write offers for much less than the listed price.

Some local market analysts have said: the bottom of the market was three months ago. Take a close look at the chart showing the median sold price ---- the upward movement started in June 2009.

These charts tell quite story. Brace yourself for the next wave of foreclosures.