The problem with "luxury" real estate in the San Francisco Bay Area is that the average home price here basically qualifies as "luxury" in most places. $3M in my neck of the woods gets you a reasonably nice 2500 sq. ft., 4/2 with a 5000 sq. ft. lot. But probably not in the "more desirable" parts of town.
And that number has continued to climb throughout COVID.
For long-term investors, I can believe that they think the market has to slow down in our area. That seems logical because the growth has been sustained since 2009, and had recovered from 2008 by about 2010.
I feel very lucky that we bought our home in 2008--when we could barely afford what we got, which was a (moderate) fixer-upper, and only because of the moderate drop caused by the financial crisis.