If you're trying to buy a home, but haven't won the bidding wars because so many people are fighting for it too, you are not alone. And as desperate buyers drive prices higher and higher, you might be wondering how can you compete and buy a home right now?
According to the California Association of Realtors, the median home price has gone up nearly two hundred thousand dollars over the past 12 months. That means home prices are going up more than 20 dollars an hour.
Inland Empire economist John Husing says it’s not going to get any easier anytime soon.
"The demand is very strong, and the supply is not there. As a consequence, the prices are being bid up."
Husing says there are many factors as to why there is such a huge demand for single-family homes in Southern California. Part of it involves millennials who are now getting married and having kids.
"The millennials are now looking to own houses and that's driving a lot of demand," Husing says.
The demand is so high that buyers are willing to bid well over the seller's price.
Realtor Martha Robles says one client recently bid more than a hundred thousand dollars over the asking price for a home in Wildomar.
"It's a really tough competition out there, I really want buyers to know you can still get a home in this market."
Roble says it is important to make sure you get a good, experienced agent who knows how to negotiate.
And if you aren't in a rush to move in right away, you could buy a home that hasn't been built yet.
"For the buyers that can wait, it's another option, definitely," says Robles. "But just know you are going to run into that extended timeframe as well there."
That's exactly what Christine Aleshire is doing. She is currently on a waiting list to buy a brand-new home near Menifee. It could take more than six months before it's built, but Aleshire says it will be perfect when it's done.
"This is what works for us. I like the lot, the location. It has everything my husband and I are looking for. We want the RV parking, the bigger lot."