The problem that we have in Burbank, and truthfully the entire SFV is that there is a shortage of inventory.
A balanced market is said to be a six month supply of homes. In Burbank we have about three months of inventory.
That means that eventually prices will start going up. However, particularly with the new appraisal procedures that came into effect in May, the bank is correct. The property may not appraise for the agreed purchase price.
If you look at the market trend for the last four years prices have been declining. At some point they are going to go back up, and in the long turn prices will continue to rise.
The bottom line is, if you like that home, and you need to buy now, and you are going to keep the home for at least 5-7 years, then think very carefully about what you do.
Do you think maybe the bank is pulling a scam??? ie..bait and swithc....bail=low asking price and the switch=attempt to get much much higher prices..
Better be carefull...Best ask for a real estate agent to have a look see...that's my idea..
Texas and other states has lots of these bank scams in the housing market...Troyi in Plano texas