Speculation /appreciation is nice but never paid my bills .when the economy is down its easier to keep a modest house renting for 700-1000 then needing to get 3,000+ in rent to keep above water .

So if the prices are going up based on speculation like it was pre 2008, you are right to worry.

I'll speculate on the property taxes, meaning you are generating less than 5% on your equity.

You have to buy on fundamentals and not factor in much appreciation if any save for what might trend with inflation.The big question is if you buy something now and its on par with what you are paying in rent then thats a push and you have all the benefits of owning your own place, both psychologically and economically, if you are buying for speculation of it going up in value I would discount that.

That would be the highest price anywhere in America, I am not speculating I have done 100s.  

Personally, I wouldn't speculate on gentrification in these areas.

It's ok to speculate and leverage but if you believe in the famous BB postulate of "perpetual appreciation" combined with no exit strategy and leverage then your going to be in for a rude awakening, the only question is when.

Nobody knows what will be in 5,10,20 years from now2)The property gets out-dated and people don't want to rent there.3)The economy crashes again (BUT, people still need a place to live.....so, I'm not too concerned by this as long as I didn't buy in a speculative bubble (like 2003-2007)But, too offset these risks you have to have a solid plan.  

So, it really depends on what your goals are down the road and how comfortable you feel speculating on future home appreciation.

She sent me this information to qualify her information:________________________________________________________________________http://www.dre.ca.gov/Examinees/BrokerExperience.htmlAcceptable Kinds of Equivalent ExperienceAn applicant may qualify with two years full-time experience, gained within the five-year period immediately prior to the date of application for the broker examination, in any of the following areas:1.Experience as an escrow or title officer or as a loan officer in a capacity directly related to the financing or conveying of real property.2.Experience as a subdivider, contractor, or speculative builder, during which time applicant performed comprehensive duties relating to the purchase, finance, development, and sale or lease of real property.3.Experience as a real property appraiser.