@Juan Diaz,
I lumped categorical implications based on capital movement, and the constraint of otherwise limits in the principle based from mainstream economics; land, money, labor, and commodities, where money knows no border yet labor is monetized as a commodity just like the intrinsic value of a precious metal, or the value of crops. Or, to be strait about it, as it appears, only land and money, the rest are either sitting and waiting to be taken or not to be taken by money disguised as a crop, labor, real estate, or precious metals. I view money being the medium of exchange and wirelessly interconnected all across the vast continents due to the fact that it is made up of air, hence, air bubbles can pop up. I further divide these wireless interconnectivity between China, USA, and Russia, in the order, because the rest of the nations either belonged to all three or combination of any one or two or three. I likened real estate similar to an electric trolley hanging and traveling across predetermined destination, that is hanging over a medium, which is an electrical cable. Just like the wireless connection, the medium being air, money travels and knows no borders. Whereas, the real estate, is local, and that locality in this instance, is the SF Bay area.
So, China drops borrowing rates, so the Feds has no option (except War), but to drop if not maintain the same low rates. Why? Because China wants to maintain if not continue the mercantilist principle of economics - more export more for the better on all other nations that she has close economic ties with. In multiple economic fronts, using dollar devaluation to make export cheaper and to cut borrowing rates, extended arm through globalization, no longer works for the USA to gain both earned and unearned income or at least have little or no effects to gain what used to be always working. Oil became the dominant tool in maintaining the USA's standard of living. But this now is also being direct in competition with Russia. So, money, as the medium of exchange, with oil (major and dominant commodity) is now wirelessly disconnected in some portions of the continent.
So, these events, lumping together, I can now call as a function of the sum of all and major events (surrounding the medium of exchange - money). The land, specific to SF Bay area, can be summed as the extreme of hyper speculative formula where land value is calculated broadly to the rate its improvement is calculated that no single formula can be used to measure its true value. This principle of land valuation tied to its improvement using a simple formula (as the basis), that is the ratio of the dollar depreciation per square footage as one indicator to determine what is speculative and what is not, can then be used for property taxation basis. Although, this would differ from county to county, but the indicator assumed that influences in the frequency and speed of transactions between buyer and seller to be the fundamental basis of property taxation based from speculative land valuation formula. This then can be assigned a rate in the equation.
The third portion that represented a wilting nature graph, based in speculative RE market, assumed that property prices reached the peak and slowly find its true value by bottoming down before it ripples back up into more stability where I call the local government to be the catalyst in lieu of private sector job losses.
A good indicator of this action is the decision by the local governments to put a brake or limits of rental price a rental owner can impose to renter (to limit speculation until wages catch up). Will this work in the long term basis? My only two cents is, no it is not going to work in the long term. Unless the basis formula for land value is determined, so that the more you improve in your land the lower is your property tax, the more and stable jobs will become, the more the economy is sustainable. I would refer the model Hong Kong has adopted with regard to land valuation and its formula, one of the city that continually sustained its economic development for the longest period.