They aren't selling for near that here. Here, $200,000 through $400,000 buys you a McMansion the size of a small bank.
the $6000 houses in my old neighborhood are now all currently selling in excess of $200,000, most of them, the "cracker jack" type, go for about $200,000 to $250,000. The 1955 house next door just sold for $240,000.
My friends from California tell me that their old houses are selling in excess of $400,000.