It sounds very conflicting to be in a market where there is an above-average number of houses on the market, and also to see many instances of multiple competing offers on properties.  Why? 

In today's marketplace in Northeast Florida, there is still an overall oversupply of houses on the market.  Decreasing each month, but still an oversupply.    However, the oversupply does not exist in every single area within the market.  In fact, there are several neighborhoods where a below-market inventory actually exists.  This can also be the case where an under supply of homes exists within a certain price range.  When this occurs, it is very possible to have more buyers than available houses, and the seller actually experiences multiple competing bids.  This will also happen if the supply of "move-in ready" homes is limited.  We are also seeing this occur very frequently.

I see many houses that just do not sparkle, so when I enter a house with a buyer that does, the buyer's decision-making process becomes very easy.  Houses that need attention - even something as simple as a fresh coat of paint to a thorough cleaning - will suffer from lack of interest.  A buyer immediately goes into a decision making process from the minute that they pull up to the curb, and the comparison of "what needs to be done" and "can I see myself here" begins.  The house which presents the least amount of work and money and presents the easiest route to move in is the one that the buyers will put the fastest offer on, and the one that will bring the best offer to the seller.

So, if you are in the home buying process and believe that you can waltz into a "deal" because there are so many houses, be prepared for the reality check when you actually begin touring properties.  And if you are a seller, be sure your house sparkles when each and every potential buyer pulls up to the curb and walks through the front door.