adjusted fully yet, i.e. the bubble isn't done bursting. I just don't think that the money you pay for a house there reflects even close to the actual value of the house. Plus, the state economy in California is less stable than it used to be. I would not buy a house in the Bay Area or SoCal.

Disclaimer: this is just me talking out my yewt, without any facts. I did pay an exorbitant amount of rent in California over the last several years, so I am also bitter.