[invaliddata]

Even in my lifetime (bay area native), there have been several collapses in the housing market in this area, about one each decade. There is no question the prices will eventually go down, and I think a lot of the optimism is from people who have recently come from places like india and china where they have not personally experienced a collapse in housing prices, and where they have not been through the roller coaster in this market yet.

My take is to not look at housing as investment, but a utility; don't overstretch yourself, don't buy with the expectation of any price appreciation, and do a serious analysis as to whether, given your circumstances, you should buy or rent. For me, the calculus was biased by the fact that this has been my home all my life, my extended family is here, and my work is here. I know I will be here long term. For others, it's not so cut and dried.