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Homes Fetch Million-Dollar Bids Over Asking in Crazed California

Soaring wealth and a persistent housing shortage are deepening an affordability crisis, yet prices keep soaring.

The interior of a Berkeley home that sold to a cash buyer for more than $4 million last month.

Source: Open Homes Photography

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The heated U.S. housing market is soaring to new extremes in California, where buying a home requires sharp elbows — and a lot of money.

Take a two-floor, 2,500-square-foot (232-square-meter) house listed in Berkeley last month for $1.795 million. The property, built in 1935 but extensively renovated, received 28 offers.