Well, that question can also be stated 'Do I believe property values will continue to rise in Los Altos?'
My short answer is 'YES". As long as their are good-paying jobs to be had in Silicon Valley, over-demand for Los Altos houses will continue. Los Altos is certainly one of the primary beneficiaries of the robust Bay Area job market because of its quality schools, quaint downtown, and beautiful neighborhoods with large houses on large lots.
I actually just discussed this topic with a client of mine this morning. The overall Bay Area housing market has seen a 14% bump this past year with no signs of any let up. Even if the market only appreciated 5%/year in the future, it will cost you $75K/year if you don't buy that $1,500,000 Los Altos house today. So it's pretty costly to sit out this market.
Is it a bubble? Again, I believe that the primary driver of high real estate values is a good job market. If the Bay Area maintains it's strong job market and strong economy, then real estate demand and high values will follow. The current values are justifiable, but only sustainable with a strong economy.
If you'd like to discuss this more or see some Los Altos properties, please feel free to contact me any time.
Intero Real Estate