If my math is right, this means that average home prices rose 80% over the course of just three years. Which explains why, every time we think we've got enough saved to begin contemplating finally buying a home, we realize we're not even close to the necessary funds for a down payment. I guess all I can do is cross my fingers and hope that the landlords continue to like us... but seriously, how is this sustainable???

@Renter for life, apparently -- To answer your question: The current situation is only sustainable as long as there are companies in the area that are willing to pay their employees so that they can afford to either buy houses outright, or at least provide enough of a down payment to the point where they can take out a *reasonable* mortgage.

Of course, once this merry-go-round stops, we will have a crash. And it will get ugly.

Take heart. I've been in this area long enough to know there are always ups and downs. We are on the up now (and everyone panics), but at some point it will come down again. Those of you who saved and waited patiently will be able to buy something. Rents will go down too. I've seen this before.

Up, then down and right back up with prices rising even higher. If your kids are in middle school now I wonder how much the prices will be. I wonder what their commute will be and would they come to visit

Worse yet prices will drop because people will say l "forget it about' in which Silicon Valley will choke to death pn its own success.

It's true, the price appreciation has been pretty crazy. The house I bought in 2011 for $825K is now worth $1.4M, if recent sales hold up. Seems extreme even for this area. And I'm not sure how much prices will actually go down-- with new Google offices opening up all over (just to name one employer) it doesn't seem likely that demand is going to slow down anytime soon. I'd find something you can afford now, even if it means setting your sights a little lower, rather than waiting for the price correction that shows no sign of coming.