If qualified buyers would stop making offers on these over-priced properties, prices would quickly fall back to 1999 levels. It’s the hysteria that “I’m missing out on something” and “If I don’t buy now, I’ll be priced out of the market” that drives prices up or keeps them where they are. When you consider the fact that you could buy a home like this for around $100k in the majority of the country, you will see the absurdity of CA home prices. I lived in SD for 30 years and I could never understand the mentality of people who took on this kind of debt for these types of homes. Yes, they’re cute, little homes but even with the “weather tax”, I don’t think they’re worth more than $125-$150k when compared to the rest of the country. If there are no takers for over-priced properties, prices fall…..(sooner than later)………that’s a fact.
