(probably because I have been contributing to a 401k for 7 years and its been very volatile).

I like the limited volatility and lower interest rates for my sake.

That said, appreciation is never a sure thing and sure prices have risen since 2010 and economy looks strong right now but, but let's face it California can be more volatile than many areas and so you may net our fine on appreciation in the near term or you may not...In general, it's best to at least be break even cash flow, then even if appreciation doesn't happen you haven't been burning cash to own the property.Dan

I know there are risks in real estate, but it's less volatile than the stock market.

That’s particularly prevalent in stocks since there is a lot more visible price volatility.

@Patrick Menefee I put mine in my stock account through Robinhood and put it in a low volatile stock such as Microsoft (which gave a 30% return in the past 12 months).

Huntsville has been to volatile lately.

Condo values can be pretty volatile, so the appraiser probably erred on the side of caution.New construction can help values of existing single family homes, but it can create competition for condos - especially high end condos.The 3rd bedroom can be very valuable in a SFH or TH.  

So there is also volatility risk (one way or the other depending on  your mindset).For me the biggest reason is diversification.

Also, another hallmark to be aware of in these markets is that prices tend to be more volatile then less expensive markets.