However, I want to concentrate more on finding deals. 

Of course, like Mark said, you can find them anywhere, but these are certainly the concentration areas.

They weren't all concentrated in one place.

I concentrate on bank owned, short sales, and picking up properties on contract...the auctions here are too full of collusion.The ideal situation for me would have been to negotiate with the lien holders prior to auction...but the homeowner wanted nothing to do with any of that.

Then my partner (thank god I found him) decided that we should concentrate on REO.

“Already the Bay Area has the greatest concentration of economic wealth of arguably any place in the country, which is creating the challenges the Bay Area is now experiencing,” she said.

I live in Colorado where cannabis is legal.

It goes for about $400/year or $224/semi-annually and concentrates on pulling information from significant life events in specified areas, such as divorce, probates, FSBOs, tax defaults, foreclosures, mortgage defaults, etc. 

All I can say is there are more than 1 way to value a property, IE. by its gross income, location, comp. sales, Etc....What you are describing has happened as a result of multiple short sales taking place in a concentrated area and I feel has definitely caused somewhat of a bottleneck for prices to run up but should only be temporary....would like to hear others weigh in on this...best regards,Chris

People looking for housing that they can afford are being pushed out in concentric circles as they search for lower price areas.