Lastly, how does climate play into the fundamentals? Most places in the US have crummy waether compared to San Diego. That said, shouldn’t we pay a premium for year around good weather

Homes in SoCal have always been more expensive than most parts of the country, and I’m sure they always will be. As has been covered here on piggington, the weather didn’t suddenly grow to super-mega-awesome from 2000 to 2005.

Whenever this thing bottoms out, people will still pay a premium to live here compared to prices elsewhere.