California Fueling Real Estate Investment in Other States

Since starting this blog I have noticed several articles about out town California investors driving up prices in other real estate markets. The above link is for the new boom in Hawaii. I have also notice similar articles in Kansas, Texas and Vermont. Here's a interesting notion. With Californians driving up the price of real estate in other markets by cashing out that equity and buying more affordable properties out of state. This has helped the surge in real estate prices nationwide. The question is how will the markets react when the California market begins to cool and Californians reduce their real estate investment?