The scary part is people here are getting in with about 5% down and interest only loans. The defaults in the next few years is going to sky rocket. I finish my MBA in May and right after that I am going to get my real estate license to take advantage of them.
You bet they are. You're in a perfect position too.
So much of California real estate is overpriced due to artificially-constricted supply, that the state finds itself in a problem. If the stupid regs were repealed, and housing prices started to come down, lots of people would find themselves with negative equity in their homes.
It would collapse the banking system, if people walked away from negative-worth real estate