More homes for sale are attracting multiple offers as buyers pursue lower-price homes and banks low-ball asking prices to attract competing bids on foreclosures.

If a house is in a good neighborhood, is maintained and is a good value, there is a great possibility of getting multiple offers.

Multiple bids usually signify a market in which prices are rising and buyers outnumber sellers. That's not true now, given rampant foreclosures, still-falling prices in many regions and low demand for higher-price homes. Multiple offers on distressed properties are also not new, but their recent frequency offers hope for the real estate market.

When sellers begin seeing multiple offers and people willing to negotiate with higher bid prices, we are seeing the beginning of the end of a time of disaster.

Competition between buyers drives prices up. The combination of home inventories coming back to reasonable quantities and low mortgage rates and that awesome 1st time home buyer Federal Tax Credit of up to $8,000 makes for a perfect time for qualified buyers to get back into the market.

As to be expected, lower-end homes priced at or below $150,000 are driving the multiple offer competitions. The trend is first sighted in regions where prices have dropped 40-50% since peak pricing in 2006.

Good values = great opportunities. Higher-price homes are also getting multiple bids. People who always wanted to live on the water are realizing it is time to buy before prices go up.

Some bidders may think foreclosure bargains are waning. The foreclosure bank-owned inventory for sale is approximately one half of inventories of a year ago. Further evidence of this trend comes from investors changing strategies. Two of my investors with usual property portfolio's of 11 - 17 properties, are beginning to sell rather than buy. Last week I was told it's getting too difficult to negotiate a steal of a deal and the deep discounts are disappearing.

Many banks have lured multiple bids by setting below-market prices. A caution to keep in mind, the government steps to curb foreclosures have delayed some, so keep an eye on your assets.

People are perceiving that foreclosures are running out. But I'm afraid there will be more.

As always, we encourage comments and questions. Please contact us at marcia@minocquamortgage.com or go to www.minocquamortgage.com for additional information.