The folks in my town are still hoping against hope--putting their houses on the market for 2x-3x what they're worth and hoping the Kalifornians will show up to pounce on an "investment property". This charade has been going on for over a year now.
There's always a scam of some sorts in some market sector with those on the front end raking in the dough and those that get suckered in on the backside get left holding an empty sack of flour.
We have people with some rather high expectations in our town as well. Original asking price of $300K for a $200K home are somewhat common. Those home don't move at all.