I agree. It all depends on what happens with the inventory of foreclosed homes. Homes under $350,000 are moving very quickly currently and the prices do seem stable right now with some even being bid up. If a flood of homes comes on the market that could change things quite a bit, but it would be welcome nonetheless, as the current inventory is so low. My short sale listings are receiving about 5 offers in their first week on the market. Check my blog for up to date postings on the Santa Maria market: http://www.SantaMariaRealEstateBlog.com.

Right now because we do not have the inventory, most of the homes on the market have sold very fast. What I have noticed is that within certain price ranges home prices have some what sabilized. With than being said it also depends of your price range lower priced homes are selling fast with multiple offers.

We are expecting the banks to be releasing more homes. If they flood the market and there are more homes than buyers it will certainly hurt the prices and they will go down at that time. I think once those forclosure homes do hit the market we should be able to get a better idea where this is all going.