I live in Oakland. A small 2 bed, 1 bath, house with a tiny yard down the steet (most likely sub 1000 sq/ft.) sold for over $425,000 earlier this year. And people were scrambling for that one.

There's no hope for me in the area. I plan to move before I buy. The secret is saving as if I were trying to buy here in the next 5 years, and then slapping a huge downpayment on a house somewhere land is cheap.