The article doesn't work for Southern California.
There is panic buying here. It doesn't matter the price range, people are jumping in the pool. Quiet frankly, I don't see the point. There is no gold rush anymore. If you see the fundamentals, it does not make sense.
Okay, Americans are naturaly risk takers, But whether it is a calculated risk or not remains to be seen.
I personally don't see a reason for panic buying. After all it is RE not stock. It does not increase in value over night. You are looking at years for any reasonable appreciation. What is rush???
Partly because they know the mortgage interest deduction is on the cutting block... (Atleast on homes over $500K or 2nd homes)... So they know they'll get a nice discount if it gets phased out or axed.