My fiancée and I recently bought a house in Sunnyvale. We close and move in at the end of this month. It was just a surreal process. In the news, you might hear that it is a good time to buy, and prices are down. Not here. The bay area housing market is just crazy. People think that the market is down, so no one wants to sell their house, and everyone thinks it is a good time to buy and wants to buy one. This created a supply and demand problem causing housing prices to continue to go up in my area. This was the 4th house we offered on. We were outbid before. One house before this one that we bid over asking on, we lost to someone who bid more than $100K above us. The house we finally bought had two other bidders to contend with.
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