The last recession was only correctly identified by a handful of people who specialized in out-of-the-box speculative shorting the market. 

So unless you just sold a house in SF, you should start looking farther away from the city for something that makes financial sense and is not pure speculation.

It's complete speculation and it tends to give people an inaccurate feel for exactly what their property should offer them.

It is certainly more speculative since you have no control over the market.

This appreciation is being driven by rapidly growing population, muchly due to tech and biotech company growth (both locally grown and CA satellite offices), not investor speculation, as in most bubbles. 

It will likely still be more expensive money than the average advertised rates, but it is important to remember that private and hard-money lenders are MUCH more likely to lend on a speculative deal (rehab/etc) than traditional lenders.  

Staying coastal and investing for appreciation requires a mind shift from what most outside of this area preach, but it can be highly profitable and without speculation if done properly.

Now was this a bait and switch by the insulation company, or is it somehow designed into the program for other reasons we could speculate on?

Lots of people believe the San Francisco Bay Area and the term "speculation" are one and the same - this only goes to show the depth of understanding those people have for the market and its driving forces.

But the idea that it will turn current cold places warm, reliably enough that we should allow it to guide our investment strategies, is the purest of speculation.