Here in Santa Cruz I live in a very nice older neighborhood on a one block street with several house well over a million dollars. Just around the corner a house just sold for over two million. My house is the worst on the street and really needs a 90% remodel but still it is worth well over 800 thousand dollars. If you lived here you too could bask under sunny skies (last weekend was t-shirt-mow the lawn weather), hardly any water, serious crime rates, transients everywhere, and a police chief who denies crime is happening. My next door neighbors house was broken into last week, cars are broken into every night. A bicycle or kids toys left unlocked is gone the next morning. And still the housing prices start in the mid 800s.