[quote=Diego Mamani]
Compared to gold or the Euro, the house is a bargain today compared to 2002. I know, I know, household incomes around here are not in gold, Euro, etc. But considering that rich people worldwide consider SD for a second home, we can’t ignore these other measures of value.[/quote]

This house does not seem to be all that desirable as a second home for an out-of-towner.

There are two reasons why CV houses cost as much as they do:

– Public schools
– Proximity to high tech jobs

And neither is a factor for an out-of-towner with enough money to spend 1M on a second home.

Your argument really only applies within 1/2 mile from the coast. More so in places where schools and jobs turn locals away. Try to buy a waterfront house in Oceanside or Dana Point, you’ll be competing with out-of-towners. Try to buy a McMansion in Carmel Valley, 99% of prospective buyers will be your familiar, boring Chinese dual-income Qualcomm employees.