Nobody knows, but my feeling is that it will drop more from here

Housing price in Bay Area has held pretty steady since last year, especially in the good school district area. The fact that it is holding up probably means that it still have some room to go down a little.

But real estate is all about location. Comparing to the whole country, Bay Area is definitely one of the good areas. The rule of the thumb of a good area is that the price rebounds first and drops last. So Bay Area housing price may go down more, but it is definitely among the areas that rebound first.

People from other area do not understand the market here and often use their limited knowledge to judge the price. It is a common mistake and we should ignore it.