Low supply leads to bidding wars

Today's North County Times story about bidding wars corroborates our housing reports for this year:  the San Diego housing market is heating up.  Bob and I have been writing this year about higher demand and falling supply, at both the low end and high end of the market.  As a result, we anticipate some price rises.  These price increases could reverse after the spring buying frenzy.

The North County Time story attributes the bidding wars to a sharp fall in supply (20% year over year).

I continue to see that government intervention is helping to stabilize the market, so this "recovery" is not based on fundamentals of a healthy housing market.

Stay tuned.