Housing Market Makes Comeback

Foreclosures take sudden nosedive as bidding wars break out among home buyers.
3:00 | 10/11/12

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Transcript for Housing Market Makes Comeback
Now, we move onto a big headline for homeowners. We learned today that foreclosures have taken a sudden nose dive. The number of homeowners filing for foreclosure has dropped to a five-year low, down 7% in a month. 16% in one year. And also tonight, strong signs people are ready to buy new homes. So, the bidding wars are breaking out. Is this the comeback we've been waiting for? Here's abc's cecilia vega. Does this come with the appliances? Reporter: Oneita parker knows if this is the house for here, she better make an offer. These days, houses are receiving and they are selling fast. We've looked at at least, i want to say, like, 30 properties. Reporter: So many you can't even remember? Yeah, there's a lot of bidding wars going on. Reporter: That's right -- bidding wars. In some pockets of the country. Kitchen. Reporter: Small kitchen. Pretty much every listing of mine since the beginning of the year has had multiple offers. Reporter: Like 73 bids on this california house alone. It sold in one week for nearly double the asking price. This three-bedroom, two-bathroom house in a los angeles suburb has only been on the market for a couple of hours and already, take a look at this. Dozens of realtors have stopped by to scope out this property for their hungry clients. So, what's behind this sudden crush? Fewer houses for sale. Compared to just a year ago, foreclosures are down that 16%. The last time the numbers were this low was before the recession hit. Those days of all those cheap homes driving down prices are ending. We've clearly hit the bottom, and I think that's what everybody has been waiting for. Reporter: But there's still a long way to go. Many aren't moving because they owe too much of their mortgage and can't afford to sell at these prices. Six years ago, the median home price was about $230,000. Today, it's just above $187,000. Whether oneita parker wins this war or not -- are you going to bid? Most likely, yes. Reporter: Her eagerness to buy is good for homeowners everywhere. Cecilia vega, abc news,

This transcript has been automatically generated and may not be 100% accurate.

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