Why SFRs in SFV prices do not pick up?

[Kevin Lefeuvre]

I am looking at SFR properties to buy in Woodland Hills, Tarzana, Encino, Hidden Hills... You can buy a nice 3BR/2BA or even bigger, remodeled with pool, in the range of 600-800. Which is hardly their 2007 pre-crash peak price. Now compare them to Westchester, Marvista, West LA, NELA, or most South OC cities, they are all some 20-40% above their pre-crash peak price.

Were they over-priced then or under-priced now? If so, Why? 

I asked myself the same question 4 years ago, and thought the difference was the inventory of foreclosures, but that is gone now. 

Thoughts?