Anyone who pays $1 million for a home had better be worth at least $5 million, and had better earn $300,000 a year.
This article lets you see some real dumps in places close to San Francisco. It also lets you see some homes that would cost $250,000 where I live.
People should rent in places like San Francisco. Then they should move.
Being $1 million in debt is dumb, unless you own about 8 homes in low-cost regions, which generates $1,000 in rental income per home, with 10% for the local property manager. This way, your renters pay off the mortgages, and you will retire comfortably on the income generated by 8 homes. That will take 30 years per home.
But the suckers keep coming. They keep buying. The lose their mobility. They will get hammered in the next recession. They will be locked into negative equity homes for years next time. They think 2009 cannot happen again. It will.
The following boom will not last in the bubble II regions.
Now see real-world houses for sale. Chick the link.