Not in Seattle.
Geography plus the land management legislation equals no end in sight for spiraling upward real estate prices. And as long as Californians are leaving their state with wheelbarrows full of cash to invest in "cheap" Seattle real estate, there's no end in sight.
"Won't happen here". I hear that from everybody everywhere. Even people in the middle of nowhere who say their prices didn't rise much so they can't fall. But take a look at inventory, in No VA it has more than doubled even though many people are moving into this area. But the newcomers can't soak up a 30k supply of listings. There are 45k new condos scheduled in the next 3 years, and condos currently are break-even year-over-year taking into account commissions. Take a comprehensive look around and you will see it CAN happen anywhere.
Hey, how'd it work out in Seattle?