California's mortgage crisis hit Mountain House, a master-planned community particularly hard last year, and eventually 90% of mortgage holders here owed more than their homes were worth.
But residents are allowing themselves the first twinges of optimism amid the gloom. The 2,600 existing homes in this development 60 miles east of San Francisco are selling at nearly three times last year's pace. One builder has sold about 30% more homes in 2009 than a year ago. And homeowners here are seeing the welcome return of another phenomenon: the bidding war.
Wall Street Journal