T38, I don't think you'll find those prices anywhere that actually touches the bay. In 2008 my brother in law bought a 950 sq ft house in a very "blue collar" neighborhood of San Mateo that hadn't been lived in for three years. Waist-high weeds in the front yard, ruptured hot water line somewhere in the concrete pad he had to find and dig out. All this for the bargain price of $580,000. Two years later and after a tear down to the studs and complete remodel, his wife and newborn finally had central heat. Even in the middle of the downturn home prices anywhere on the peninsula didn't retreat at all, just plateaud for a while. That same house now cost $800-900k, at least.

I grew up in the east bay, but bailed out years ago. Still love NorCal, but the Bay Area is insane.