Back in 2001, a person told me that the San Francisco Bay Area real estate market was appreciating too quickly. With thoughts of the dot.com stock deflation fresh in mind, he told me that he had sold his house to lock-in his gains and will be buying a new house once the real estate bubble popped. Well, seven years later, the bloom is off the rose. However, prices still have a ways to go before they are even close to 2001 levels.