Short Sale Market in Fresno County (California)

Here are some interesting observations regarding the Real Estate Market here in Fresno County. I currently have a client who is trying to buy a home priced around 125K. They are paying cash, but have been outbid on 5-6 properties in the past 3 weeks and all had multiple offers. Investors seem to have returned to Fresno County looking to buy REO properties that have been priced well. There was an article in the Fresno Bee yesterday which told the story of how local cities have federal money to buy these REO's, but they are losing the homes to these Investors in biding wars. I think it is great that we have multiple offers on these properties, but frustrating for the 1st time home buyer such as my client I mentioned above. The increased interest and activity in the market is great.... now we just need to fix the financial side of the market and make it a little easier for buyers to get a good loan that they can afford...................