In any free market economy you have the potential for bubbles that can pop due to excess speculative demand - this isn't going away any time soon because it's driven by human nature.
You might find this an interesting read:
"Bubble or no bubble? It depends on who you ask..."
You might also want to view the City-by-City Bay East AOR "Weather Report" for September Year-over-Year findings. http://www.youtube.com/watch?feature=player_profilepage&
Here's the bottom line, in my opinion:
You really cannot make decisions based on generalizations of any sort. You have to target your research!
For example, 1) type of home are you considering, 2) the designated geographic search area, 3) the square footage range, 4) your term of occupation, 5) the trend in interest rates for YOUR targeted loan product, 6) the direction of regional job growth; and because there is a correlation to value, 7) School API scores. This by no means an exhaustive list of variables; however, it's a step in the right direction to understand whether you may be in a "Bubble".
â€œInteresting question are buyers willing to buy at peak level prices and even over peak level prices now?â€
Your real question did not appear until your second response to your original post.
Your assumption that prices have â€œpeakedâ€ is not supported by any facts. Prices are still rising, so no peak has been reached. Long term owners are eager to buy now before interest rates rise â€“ which they will inevitably do at some future point. Buyers also see prices continuing to rise â€“ perhaps somewhat less rapidly than in the last year â€“ and want to get in earlier in the escalation rather than later.
There is nothing wrong with flippers making a profit on the purchase, rehabilitation and sale of a property. Buyers of flipped properties get turn-key houses with modern fixtures. Buyers still have the opportunity to do inspections to satisfy themselves of the condition of the property.
Although there are a decent number of flips out there, owner-occupied homes represent the overwhelming majority of sales.
Here is a post you should read:
Current Bay Area Market NOT A Bubble: Top 5 Buyer Recommendations
Flipped properties often serve a good service as buyers with little money to fix a home can buy a home already fixed.
And purchased at market value.