house prices in Santa Ana, Fountain Valley

Keith
Home Buyer
92704

In this buyer's market, I'm still very surprised to see that home prices in Santa Ana and Fountain Valley are still sky high, around 350,000 - 400,000. What are these people thinking ? with the current foreclosure rate, existing inventory, unemployment rate, and especially ARMs will reset higher in May or June, more houses will be available on the market.
With $300K, I can buy a 3 bed room townhouse in Huntington Beach nowadays. Sure, it is a townhome, but it is by "the beach". What does Santa Ana and Fountain Valley have ???

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