Silicon Valley real estate market: The bidding war is back

The affordable end of Silicon Valley’s housing market has taken off, with homes often attracting dozens of bids in a repeat of the overheated days of the dot-com boom and the housing bubble.
But despite prices that are in some cases half of what they were at the peak of the market, first-time buyers are being shut out, outbid by investors willing to pay cash for houses they think will bring a good return on their money as rentals, and eventually appreciate in value.
During the dot-com era, the frenzy was for high-priced homes. This time, the homes that are selling briskly are lower-priced bank-owned foreclosures or sales by distressed borrowers. Those homes are sometimes fetching 50 bids or more. But even homes in more expensive areas such as Willow Glen and Cupertino are getting multiple offers, agents say.
A four-bedroom bank-owned home in South San Jose listed at $299,000 got 112 bids last month. The 1,220-square-foot house will probably go to a buyer who made an all-cash offer of about $360,000.
“There just seems to be a groundswell of people who have a good amount of money,” said Brett Mattos of Ventura Barnett Properties, who listed the property. “The last four foreclosures I’ve had sold for cash.”
P Carey- Mercurynews.

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