Selling a $1M home doesn't mean you have $1M in income, so I think in general it wouldn't impact the real estate market except perhaps at the much higher end -

Selling a $1M home doesn't mean you have $1M in income, so I think in general it wouldn't impact the real estate market except perhaps at the much higher end - maybe $5M or higher. Our housing market would probably be more sane if developers had more pressure to focus on building units in the middle to low end of the market anyway in California.