High affordability is fueling home sales in the San Fernando Valley right now. And the federal home buyer tax credit, which was recently expanded and extended until April 2010, has created heavy demand for properties in the $450,000 and less category.

But there’s a problem, according to local Realtors. Housing inventories are not meeting demand. And one thing is at least partially to blame: the long turnaround time for mortgage lenders to approve short sales.

“There’s not a streamlined system to facilitate these short sales,” said Patti Petralia of RE/MAX Olson