Hi Joel,
Home prices vary depending on location but in general the Bay Area is relatively expensive compare to other parts of Northern California. This is true of any large metropolitan centers (i.e. job centers) in other States. The south Bay Area where Cupertino is located is part of Silicon Valley and is the home of many hi-tech firms. You are competing with their employees for housing and the reason why home prices are high. Apple Computer's headquarter is in Cupertino.
There are "bedroom" communities further out which are more affordable and for some people that makes sense. There is a cost associated with living further out such as commute time, gas, wear/tear on your vehicle, etc. and for some people that may or may not make sense.
I think initially renting is a good idea to get to know the area.
Northern California is a great place to live! You have mostly mild weather all year round and you can find a race track event with the various clubs almost any given day.
You have the beautiful Pacific Ocean to the west and skiing during the winter is just 3-4 hours away towards the northeast.
The NorCal race tracks: Thunderhill, Infineon and Laguna Seca are some of the best tracks in the country with natural elevation and scenery changes from turn to turn.
NASA NorCal races mainly at Infineon and Thunderhill. 944-Spec in NorCal continues to grow every year and we have at least 12 licensed 944-Spec racers for the beginning of 2010 and possibly more before the year end.
The 944-Spec community as a whole is very friendly and NorCal is no exception.
If the job situation works out for you in NorCal we will look forward to meeting and racing with you!