I was just watching CNN's coverage of the fire. They were showing a home burn in the Montecito hills. It was probably between 3500-4000 square feet. The host said something to the effect of "that is a huge home, it is probably worth more than $1 million!"
I had to laugh... it may be worth 10 times that or even more. It is certainly worth at least $6 or 7 million. There are lots of homes in the fire area that are worth $10-20 million and more. Remember Oprah paid $50 million for hers and then renovated it and that area is where she lives. It wasn't that long ago that I remember seeing a little cottage - about 900 square feet - sell for $1 million in Montecito.
Even with the drop in home values, prices here are just ridiculous. How can entire communities be able to afford these prices? And what does it do to a community when the middle class and the poor are completely priced out?