Well, let’s also not forget that market forces in general are not being allowed to operate freely. I think even most piggs have been surprised by the amount of government intervention in the housing market. Not to mention the constant devaluing of the dollar. As long as nominal prices remain constant, the masses will be happy and not pay attention to real inflation adjusted prices. BB said QE3 could be coming soon…

Yes, SD is a very nice place to live. But that relative value probably did get exaggerated during the bubble because of the false sense of wealth most people felt. How long it will take to return to a higher than average “normal” is a good question.