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Looks like it's all about inventory. No one is selling their home in Santa Clara County (San Jose)[0]:

Homes for sale in March 2016: 1,254

Homes for sale in March 2017: 934

Homes for sale in March 2018: 516

[0] http://scc.rereport.com/market_reports

Why sell when your home value is increasing by $292,000 a year and property taxes are not going up? This seems like a very strong HODL time for real estate as an investment. The fundamentals are sound, there are tons of people looking for a roof over their head so they can continue working their dream job and supply constraints that prevent the production of new homes to accommodate them.

It's artificially constrained supply. It's really hard to build new housing in the Bay Area.

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