We decided to sell our house rather than rent it after we moved. We got 7 serious offers 10K-15K over list price in less than 3 days. The house in under contract and set to close in a couple weeks. Three of the seven offers we considered were from out of state buyers (California)

the buyer is in California and has never set foot in Arizona during this entire process. 

I don't know if the buyer is going to move to AZ and live in it, or if he's buying an investment property to rent. 

But the fact is....Californians ARE buying up real estate in AZ like crazy and it IS driving up property values.