You are absolutely right.

The hot money is pushing the market up and up. So the middle-classes like us are having more and more barriers to enter the market. Two stories about san marino: there's a very old house listed for 899K (3B/1B) (not good area of san marino), condition is very bad, lot is about 9000sf. I went to the open house, so many people came over and visited. The listing agent was 15 minutes late for the open house, people (including us) just waited outside. After the door is open, there are at least 10 groups of people visited in just 10 minutes! The house is inactive in about two weeks on the MLS list.I'm pretty sure it's over-bidded already. There's also another open house last weekend, priced at 1.6M. I didn't go, but my agent went. He told me that it's like a super market -- people come and go, come and go. He said it will be over-bidded for sure.