I've seen this, anecdotally, in trying to buy a house in the bay area. I've lost two serious bids to "foreign investors" who pay 10% above asking price, 100% cash, with no contingencies. I've heard stories of these properties going vacant, as well. It's frustrating.

An acquaintance who works as a wealth management consultant made an interesting point: there are hot markets in other areas of the country, but SFO is right here. The bay's accessibility could be exacerbating our problems, ironically.

He is advising his clients to pull out of real estate in California right now - not so much because of a potential bubble, but because the market is so bizarre.