As long as there is a demand with buyers willing to pay, then prices continue to go up exponentiallly. At some point,however, companies will start to leave CA due to the high cost of doing business. When that happens, the housing bubble is going to burst. I happened in Texas in the 1980's and ultimately led to the savings & loan collapse. On the other hand, everyone wants to live in CA because of the lifestyle. We'll just have to wait and see.
TR
