REO Inventory Increasing

In a new report from the California Association of Realtors, the number of homeowners that are behind in their mortgage declined in April, well that is good news!! Unfortunately the REO inventory rose 20.7 percent, a new high. Keeping that is mind why is our inventory at an all time low. Properties are still seeing multiple offers after being on the market for 2 days, driving the prices up. Potential home buyers are getting discouraged after writing 6,7, or even 8 offers prior to finally getting one accepted!!! In short REO inventory rises and available inventory continues to decline.