I do not really consider Guerneville part of the bay area either, it is 2 counties north of SF. Prices are coming down in the Russian River area. I have watched them for years, first go up, then hold, then fall.

Thanks for your response to my initial question. I think one of the reasons it was so apparent to me when we first moved to CA was that it was much more magnified here than in Chicago, but even in Chicago many, many people were drinking the “housing only goes up” kool-aid.