The price of homes in LA County is one of my favorite topics to rant and rave about until I'm blue in the face. Since 2002, when we innocently peeked into a neighbor's open house, we've been in a perennial state of sticker shock. I just could not see how people could afford these tiny homes at such extraordinary prices. A two-bedroom, one-bathroom home was selling for $425,000. Until I moved here, I thought two bathrooms and three bedrooms was a building code standard. I exaggerate, but only a little. After questioning every real estate agent I have a passing acquaintance with (I know three), reading the Sunday Time's Homes section and listing to NPR, I have finally figured it out: they're called interest only mortgages. You pay a lower monthly mortgage by putting off paying the principle in hopes the equity on the home increases enough to borrow more money from. According to my sources there is a 40%- 50% increase in the use of this type on loan. Risky I know but wait...

In this parallel universe known as the Los Angeles County housing market, a charming 1,354 square feet, one-bathroom, two-bedroom and three-car-garage bungalow can be yours for $729,000. According to the realtor specs the interior has been repaired and the home is in move-in condition. Can it be true? A housing market so hot that "move-in condition" is a selling feature. Another sad but true fact about this house: it's three doors away from the house we saw in 2002. Oh crap, I don't want to do the math.