4 San Diegan housing bulls walk into BofA to bid on BofA owned REOs.

Mr. Banker says: Thanks for coming, today we are bidding on 2 fine REOs, one on Main St. and one on 3rd St. We’ll start at $200k for the Main St. property and $160k for the one on 3rd.

SD Bull #1: But I see 250 REOs on your list for the area we are interested in.

SD Bull #2: Why can’t we just make you an offer on any one of the 250 we prefer?

MR Banker: It does not work that way. There are only 2 available for sale. So there is an extreme, dire shortage of these affordable houses.

SD Bull #3: Makes sense! Here’s my bid on the one on Main St. My realtor said I need to get ahead of the bidding if I expect to win one of these 50% of REOs so I’m gonna go with…. $220k

SD Bull #2: I bid $225k!

SD Bull #1: I want to bid but I am worried because I see 250 REOs on that list right now and I read somewhere that there is a tidal wave of even more foreclosures coming soon.

Mr. Banker: The average wage for people in this area has been re-adjusted upward by removing the lower income earners from the equation so affordability ratios are now at all time lows, first time buyers will now come from wealthy islands and not from apartments anymore, SD has wonderful weather, It’s different here, Its different this time. Mortgage rates are low. Engineers are getting raises. You had better hurry and put an offer in on this house on Main St. because it seems everyone wants that one!

SD Bull #1: Well Bernanke did say he saw some green shoots, and that house on 3rd St. is a mess so….I’ll go $230k on Main St!

SD Bull #4: I’m a winner, and I deserve this house, I’m gonna go $240k!

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The next day Piggs are treated to a new post:

“Hey everyone this fence sitter finally snagged one of those super priced REOs!”

Circle jerking and reach arounds from likeminded folks ensue.