I was somewhat amused this morning looking at our Sunday LA Times and seeing the blaring headline – “Bidding wars are back in tight market”.

Previous blogs and a comment I made in our June newsletter about an investor’s all cash offer (not successful) last week has already alluded to the fierce competition for homes – especially correctly priced entry level homes and condos.

So what does it all mean?

For buyers – it means investors are seeing exceptional, generational, value in residential real estate. Rents are strong, the economy will ultimately heal itself (despite Washington) and they anticipate superior appreciation in the coming years – vice investing in stocks (equity) or bonds (debt).

For sellers – it means there are good, strong buyers waiting to make an offer on your home – as long as it is priced at 2012 prices – not 2007 prices.