It is simply a matter of supply and demand. The supply of houses is growing very slowly because of opposition from current property owners and the governments that represent them. Jobs, which draw new workers, gave been growing at a rate of 7 to ten times the number of new housing units. As those new workers compete for the existing housing units, some one will win the day by offering more money, and so raising the market price.
As this is repeated, the price of housing continues to rise. And it won’t adjust until the number of jobs decreases or the number of homes increase.
Thanks for visiting my new blog. I hope to impart some of my 20+ years of realty wisdom about one of the hottest housing markets in the country. Some of my posts can also be found on Quora at quora.com/profile/Maureen-McGinley. Those posts will include a link and tag.
I hope you find value in all that I've learned. Please feel free to share comments here or email me directly anytime - especially if I can be of service in your SF Bay Area property selling or buying efforts!