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Just read an article about how the price of housing has gone up by over 100 percent in four years in Bakersfield, CA. Anybody who lives on the coast knows there ain't nothing happening in Bakersfield -- not much in the way of jobs, terrible heat, ugly surroundings. It's not even _near_ anything good, and there's plenty of empty (and ugly) land nearby. So why has the average price of a decent tract house gone up from $160K in 2000 to $375K today?
Answer: there is no good reason. Just speculation, greed, and (temporarily) low interest rates that encourage speculation.
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