Reaffirming once again that if "nobody can afford to buy them" the actual prices start coming down. A more interesting thing for me however was that owner occupied (which is to say the person buying the house lives there) has not been growing[1]. Instead third parties are buying the houses as investments and renting them. That is a really risky strategy in a place like SF with rent controls as the floor can fall out of the market, and you're unable to raise rents to cover your balloon payment (or other over leveraged strategy) and that squeezes the investor to default.
[1] https://www.homeunion.com/blog/investment-home-prices-rising...