I would say this phenomenon is the same as when the stock index crashed, major expensive stocks like Facebook and google crashed as well ;-) but cheaper stock that's not too correlated to the main market, has much lower volatility. 

The sooner you have debt against it, the less appealing you may appear. 2nd reason, If the whole market came crashing down (again) and you lost everything, wouldn't you rather lose the condos instead of your personal home?

Could this be a recipe for the next crash in the housing market?

Prices have gone up significantly from the crash but still much cheaper than L.A of course .On the lower end homes that are now about $130,000 were $50,000 or less during the crash.Unemployment rate is relatively high compared to rest of CA and L.A and it's quite a different economy of course.There is a Bakersfield subforum here on BP too which you might want to check out .. some Bakersfield realtors that are pretty active and good posters .Regarding FHA loan I don't think believe that owning an investment property should disqualify you .FHA also is not just for first time homebuyers.Best of luck

You can always compare to what the price was back in 2006 before the crash.

The BP app works sporadically and often times crashes. 

Truth be told, this isn't the same Houston as in the 80's when the last oil crash occurred.

The app crashes a lot too.

@Marc RothWhere is the information about if the market is about to crash?

Market crash?