The truth is, we are still seeing multiple offers on homes buyers want. The market is still great for sellers. Demand has not waned and the only thing slowing us down is the continued lack of inventory. I have many buyers right now who can all attest to the fact that inventory is really low. We all know prices rose by about $100,000. That is a tricky number because the type of home changed dramatically. Low end homes are gone. Those really did go up about 100k. The thing that raised median prices was the introduction of standard sales to the market while short sales and REO's took a big dive. I have "investors" coming into my office all the time wanting to buy at prices that have come and gone. It is a tough reality for them that those options are not there any more.
Foreclosed homes went from about half the inventory in the height of the recession to less than 5% in December. Buyers looking for those have even less hope than those looking for standard sales these days.
Yes, "affordability" is down but make no mistake, there are ready, willing and able buyers looking at homes every day trying to find something they can get into.
