What holds true for San Francisco's housing market also holds true for nearby Silicon Valley.
The average worker in the area now earns more than $100,000 annually, and more than a quarter of all jobs are in tech.
"There's a lot of high net-worth individuals concentrated in a small area," said Appleton-Young, the chief economist for the California Association of Realtors.
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That means a lot of money chasing homes for sale and driving up prices. Building more homes is not always easy -- or cheap. California's strict regulations make development expensive and the area is also constrained geographically, with little land left for large scale building.