For Stefan Walker, a Realtor with Alain Pinel Realtors in Los Gatos, the answer is "yes with a capital 'Y.' "

"It's most evident in first-time buyers and people new to the area, as more established residents are obviously trading equity when they move up and are therefore not as exposed to the true cost of local housing. For most new buyers it takes far more resources than they expected to buy a home," said Walker.

For most people their dream home is still a dream. Even when compromising on some or all of their wants, Walker finds that most people still wind up paying more than they wanted to just to get the home or neighborhood they desire. Lifestyle is invariably affected, since disposable income for vacations, dinner out, and so on is squeezed, said Walker. "One good thing, however, is that most people recognize the tax savings and investment potential of Silicon Valley property and view their homes as more than just a roof over their heads, but also a key component of their retirement portfolio that will ultimately help them achieve their goals."

"The American Dream?" asked Roz McIntyre of Bugati Royal Properties in Sunnyvale. "We now dream of keeping our jobs and good health for our families. The high cost of housing, coupled with the loss of jobs and the uncertainty of the future of our economy, has and will affect the lifestyle of the buyer and the seller."

However, in spite of concerns about the economy, what Grenspan will do next, eroded confidence in the corporate world and job security, McIntyre said, people are still concerned about location when purchasing a home. They want to be close to schools and work.

Many families will sacrifice to invest in a home by putting up with hectic lifestyles where both parents work and children attend daycare, said Realtor Jan Gray of Coldwell Banker in Montara. "As their house appreciates, refinancing is an option to pay for the kids' college, buy a second or retirement home. Bay Area houses are more than shelter--they are a solid investment."

Most of the people in today's market are move-up buyers who could not compete before, said Alicia Tuvell of Coldwell Banker in Los Altos, who also serves as president of the Silicon Valley Association of Realtors. "They are looking for the best schools their money can buy, as well as location. Many people are being forced to live in two- and three-bedroom homes with two or more children. Although the rates are helping our market, the largest factor for us is lack of supply."

Tuvell said Realtors are tackling the issue of affordable housing to make housing more accessible for people who work in low-paying jobs in local communities, such as firemen, teachers, nurses and store clerks.

"We are committed to raising the awareness on the affordable housing issue and getting Realtors involved in the solution," said Tuvell.