I don't know what market you're in, but it's definitely hard to find good people in Silicon Valley. Most of the time my company finds one, they have multiple offers.
It's also difficult to believe in an oversaturation of developers when their salaries are at record highs -- that only happens when demand increases relative to supply. There is no union, and minimum wage is nowhere near what developers are paid, so supply and demand is the only explanation for the increase in developer salaries over the past few years. In an oversaturated market, salaries would decrease, not increase.
I dunno, SV startups tend to measure programmers quality in a lot of superficial ways. There are many cultural fit, age and other random expectation that limit the pool. It is a bit like herd - you get to be in demand because you have the thing everyone wants now and a year later no one wants you because herd changed opinion. Your ability meanwhile did not changed.
If there would be actual shortage, companies would find a way to work with people who want to work from home (I know it is less effective and not for everything, but if you are really desperate you find a way) or part time or with people who are not quite cool at beer but will work. Companies being picky about things that are not strictly speaking ability suggest there is no shortage. It means companies are in position to be picky.
> I don't know what market you're in, but it's definitely hard to find good people in Silicon Valley.
Depending on how you define "good", I would dispute the assumption that every company deserves good people. Information about what a company is like to work at spreads fast enough for good people to avoid them. There are plenty of such companies.
It's also difficult to believe in an oversaturation of developers when their salaries are at record highs -- that only happens when demand increases relative to supply. There is no union, and minimum wage is nowhere near what developers are paid, so supply and demand is the only explanation for the increase in developer salaries over the past few years. In an oversaturated market, salaries would decrease, not increase.