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Are you also wondering where are these people on a bidding war in Cupertino, Saratoga, Los Gatos, Campbell in North California getting money from? Laughing out loud, the rest of the country is still deep in real-estate shock while these people are on a bidding war to buy $1.2 to $1.8million homes in Cupertino, Saratoga, Los Gatos

Duing my visit to open-house in my neighborhood in Cupertino, I raised the above question with a few potential buyers delicately and I have summarized them below:

1. This home they are buying due to equity accumulated after selling their previous second or third home - "I have sold my previous home, accumulated the equity of over $600k to $800k and willing to do 50% cash down" - one of them even said that.

2. Some of the companies in the valley has experienced illogical exuberance in thier stock prices and few engineers have experienced 'Uncle Sam Resolution Syndrome'  and trying to put away their capital gains into home investment  and buying homes in $700 to $800k range pushing those first or second  home sellers to take their equity and run to Cupertino, Los Gatos and Saratoga - CLS (in future)

3. The urge to give good education to their kids is also one of the reason - the elementary, middle and high schools in CLS is pretty good. Why not?

4. There is also peer pressure in some of the ethnic community to own home in CLS.