Yup. Half a year ago my wife sold her mother's house in SF. We priced it at $1.2M to match comparable sales over the last year. It sold 1st week of open house at $1.5M, several hundred thousand over asking with multiple bids. Went to a tech couple. Last week, a similar home down the street a couple blocks went on sale at $1.3M and sold for $2.1M, $800 thousand over asking, and was an all cash offer and the home never made it to open house. Most likely an overseas buyer. Crazy shortage of housing with money-bag buyers.
Geez those amounts are incredible.
For those prices I can see relocating to a cheaper area.
For those prices, you could buy an upscale home somewhere else, and still have money to go back to visit the bay area several times a year, if so inclined to come back to visit family and friends, and visit favorite places in your old hometown.