SF Bay Area: not a typical market
That market is too far removed from reality...It will implode. It needs to.It's certainly far removed from the gritty reality of the rest of the country, but there's a reason (actually several reasons, starting with weather, culture, cuisine, politics) that people would rather live here than in Muncie, Peoria or Hackensack. Obviously prices can't continue to rise at the rate they've been the last fifteen years—my 99 year-old crumbling manse, even with its foundation issues, would probably not have any takers in today's market at 4x its 1999 purchase price, but would be snapped up in a minute (with the Whole Foods Market shortly to open a hundred yards away) at 3x. I'm not particularly worried about an implosion.
cordially,