Interesting, in the Phoenix area, there are hardly any foreclosures because homes have appreciated so fast, some 30% in the past year. If people cannot make their payments, they can easily sell their home for more than the mortgage balance. Perhaps the Denver area prices are not as good because the city is so liberal.
And,how, pray tell, does your theory apply to San Francisco's skyrocketing real estate?
It could be argued that this is a classic sign of a bubble.