Round and round it goes

Over the past 40 years, the Bay Area housing market has seen at least four major booms. Every time, experts said the good times would never end. Every time, they were wrong. Economists call this “irrational exuberance”.

Each of these booms – or upcycles – have been followed by market corrections, sometimes with devastating consequences, such as the Great Recession. Every time, experts predicted an endless downward spiral. Every time, they were wrong.

Like any industry, housing markets run in cycles. But despite all the booms and busts, our local market has always come back stronger than ever.

Whether it’s our status as a financial, innovation, and cultural center, spectacular natural beauty and open space, and diversity, inclusion, and opportunity, Silicon Valley continues to be one of the world’s great metropolitan areas.