I think you have to get very specific about the area you're referring to. "Bay Area" is too broad. I work on the Peninsula - not in SF.
On the Coast, in general, it is taking longer than it has in the recent past for homes to sell. However, that's not true on the Peninsula of San Mateo County. There are multiple offers; homes are selling over the asking price.
Like I said, I don't work the SF market; however, I'm hearing from my peers that that market is extremely competative. Multiple offers are far over the asking price, as in 50k to 150k+.
I'm seeing short sales; but many of those are receiving multiple offers. Prices are not rising as fast as they were, but still are climbing. Homes are taking longer to sell, but not to the point of stagnating.
To answer your question specifically, I expect that those trends will continue.
Land is at a premium; the weather is superior; new construction is very limited; major companies continue to hire. The population still grows faster than the housing available.
Basically, I'm not seeing what you describe.
Would you post the city where you're seeing these things? I'd be really interested in running statistics.