Bay area housing prices had gone up 15-25% in the past year depending on neighborhood (and depend on which source you get the data from). We are looking for houses and the bidding wars are kinda crazy. Not sure are things slowing down, or if we are in a bubble. We are looking to buy a starter home (2 bedroom with extra space for office), but the thing with starter home is that if we have more than one kid, we may outgrow it. I would hate to be caught up in a situation if/ when that happens and we have to sell during economic downturn and lose money. Esp. with the Bay Area housing prices, buying / selling can mean over 50K. If during a "normal" market, and I can assume housing prices to continue to increase 3%/ year in the next 7 years, then even if we do need to sell 7 years later, it would make financial sense to buy a starter home (according to the nytimes buy vs rent calculator)...
Any meaningful predictions about how the bay area market will go in the next few years?