GUNDLACH: The Southern California Housing Market Hasn't Been This Crazy Since The '80s

But some, like economist Robert Shiller, believe we're starting to see bubble-like mentality in certain local markets like Phoenix and Las Vegas.

Florida is apparently "on fire" and California is seeing buying frenzies.

Southern California Public Radio caught up with bond legend and long-time SoCal resident Jeff Gundlach.

Gundlach says he is seeing a "buyer's panic" in the area as prospective buyers scoop up the limited supply.

"People are fighting with other people," he noted, engaging in bidding wars in which houses go on the market and immediately receive dozens of offers.

"It's almost the same type of environment I remember from the late 1980s," said Gundlach, a longtime Southern California resident. "People would be writing out offers on the roofs of their cars – and there would always be several cars lined up."

He attributes the local mania to the low levels of housing starts and the Federal Reserve's extraordinary efforts to keep borrowing rates low.

Read more at SCPR.org.