Sacramento Housing Prices

This just in:

The average price of a home in Fornicalia is $500,000.

The average price of a home in Sacramento, Fornicalia is $400,000.

To qualify for a $400,000 home, you need to have an income of $120,000.

From the Washington Post:

According to a new survey of average home prices in 319 U.S. markets by real estate firm Coldwell Banker, you've got to be a millionaire to be middle-class in the Golden State.

Of the top 10 most expensive places to buy a relatively basic, 2,200-square-foot, four-bedroom, two-car garage house, nine are in California, with the priciest town being La Jolla, where that kind of home costs $1.88 million. It would cost $1.77 million in Santa Monica and $1.27 million in San Jose, No. 9 on the list. In Greenwich, Conn., the only town outside California to make the top 10, it would cost just under $1.27 million.

My question:

Who in the hell is buying homes in Fornicalia? I bought my 1200sf mountain home in 1993 for $117,000. It was last appraised at $300,000 -- new deck, new paint, etc. At that price, I honestly couldn't afford to buy back my own house at its appraised value! How soon will everyone regret their Trick Mortgage?

Where are the least expensive homes? From the WT:

Rock bottom in Killeen, Tex., where the average price is $131,328, according to Coldwell Banker.

So: is the US housing market going to crash?

The United Kingdom is experiencing its own concerns in the housing market.