This afternoon my daughter led us to a selling house nearly opposite to hers.  The house is open to the public to visit only on the weekends before the sale is done.  Its a typical residential house in the neighborhood, containing 4 bed rooms and 2 and a half bath, but beautifully refurbished.  Do you know how much is the asking price?  2.2 million.  But in view of the hot market now in the bay area, the competitive bids will most likely boost the final price up to extra 10%.  My goodness!

The price and the quantity of real estate everywhere are decided by the law of supply and demand.  In the bay area, due to the magnet of Silicon Valley for talents, there are always ardent demand for housing.  Besides, as commuters have to rely on vehicles to fight traffic jam on highways everyday, mostly due to lack of public transportation, that makes people living in suburbs desperately try to squeeze into "yolk" areas.  On supply side, due to the zone regulations and the living qualites required by the people of "vested interests", the existing residents, that deters developers from building more houses and condos.  Since the equilibrium of supply and demand is hard to achieve, the buoyancy of housing in the bay area is inevitably a sure thing. 

Supply and demand is a law alright, still an accountable government is able to "control" the prices of housing.  For example, to thwart the evil attempt of speculation by land hoarders, to discourage unnecessary buyers by tax means, and so on may prove feasible.  After all the justice of society is always the most important thing for rulers to think of. 

P.S. Housing price is high here, so is the concomitant high living standard.  The pittance of my labor pension(even plus the social security pension) could hardly afford me a decent life here.  I guess Id better go back to Taiwan.