You're right about the weather in California (San Diego to be precise) being great but if you can't afford to pay the skyrocketing property taxes, the climate is not important. Proposition 13 protects Californians from the taxraisers.
I know someone who moved from Dallas about ten years ago to San Diego. His property taxes are fixed at about 2,600 a year plus a 2% inflation increase and his Dad's taxes in Dallas (before he had to sell) skyrocketed to $13,000 per year. Taxans have it much worse than Californians but they do not realize it. Taxans desperately need a Howard Jarvis out there to save them from the tax-and-spend politicians.
I love Prop 13 -- but it definitely doesn't help today's sales much. New buyers don't benefit until well into the future, because of the reassessment upon sale.
Home prices have been insane in California for a while, because all the money wants to move to where it's beautiful. But eventually there isn't enough money out there to chase the high prices being asked. I bet that California is going to be hit hardest by the dip in housing. Maine is already suffering the same way...