Comment by threatofrain

If we go to a place where homes cost $400k then we're all buying at $400k, regardless of whether people understand speculation or markets. Once you allow enough people with deep pockets to do speculation or price arbitrage... then we're all paying it.

It's not that we shouldn't desire cheaper homes, but we should realize that people who paid $400k are largely not speculators. They bought what the market was willing to offer.