Don’t underestimate the poor judgment of the buyers in the “nicer”, i.e. tract hell, areas that a lot of people seem to talk about here. The wife of my partner on a project I am working on was an Admin Asst to a Wells Mtg Broker in Carmel Valley from 2002 till mid 2006. From about 2003-2006 they were processing dozens of $1M+ B paper loans a month, and the 4 other brokers were doing the same. Granted very few were teaser ARM’s, but a HUGE amount of no doc/lo doc stated income stuff. It seems that 90% of the people who bought in Carmel Valley since 2000 are self employed and making $250k/yr… yeah right. If cookie cutter housing is your thing, your time will come.