Because people are often irrational in making decisions.
When a house in a neighborhood that formerly sold in the 800’s now sells for 750, we automatically think that the house is “cheap” and a “bargain.” Never mind that the house is now only 11 times the area’s median household income. Never mind that the fair market rent is around $2200. It looks like the buyer got a deal because the only thing people look at is the former sales prices for that neighborhood.
