My epiphany story is very similar. I also moved from Chicago to SD in Fall 2004. I owned a nice townhouse in Hinsdale that would have cost 3 times as much here for something similar. It really became apparent to me for the following reasons:
1.) I had conducted a thorough a job search and landed a job before we actually moved. Therefore, I had a good handle on the income differentials between Chicagoland and SD. Not much in chosen profession. Clue number 1.
2.) Constant pressure from the in-laws (all in LA area) to buy before we moved out to SD because we would be “priced out”. Note: none of them are finance professionals and I am. They are all in the Healthcare field (Philipino Nurses largely).
3.)People reporting to my wife (enlisteds at Balboa hospital) who make less half our combined income in many cases were buying 700K houses in SD.
4.) Discovered that I/O loans were being largely used to accomplish purchases at ridiculous price to income ratios.
