Lately every home I bid on has been getting mulitple bids and going over asking. And they're  not all REOs, in fact the last two were regular sales in Newark, CA.

I bid on a duet in Newark recently and it got 7 offers, and looks to have went over asking, which was $25k over the last closed of the same unit. It's nuts to chase up a house in this environment.

Also a entry level detached home in Newark got 33 offers with the high about $50k over asking. Also nuts. Again these were regular transactions.

Yes interest rates are low, and prices have come down, but the lack on inventory in Fremont, Newark, and Union City is temporary is making buyers behave irrationally. Similar to how they behaved in 2003-2005.

More homes will be coming on the market, especially in the low end, so be patient. Don't Panic!!!

There will be plenty of homes for everyone to get into at  reasonable price.