It's all bullshit; price isn't even majorly based on true value, it's the old location, location,location and the perceptions. I bought my place in the sticks 35 yrs ago 40 acres, tiny little house for $120K and I overpaid because right next to me was a gated community being built. Reflected added value horseshit. Then this area became the newest wine country and real estate absolutely skyrocketed just like what happened in Napa. Now some vineyards are being sold off and parceled out for housing development. Supply and demand and location. A few years ago a tiny half sized lot in San Francisco sold for over 1 million.