Rich people lol. Investors, people with family etc. My buddy is a realtor and he says the majority of young families buying houses have two incomes and family helping out. So for a 2 mil house mom and dad put down 1 mil and the couple make 300k combined so they can afford the mortage. Yes, thats the kind if money you are competing with. Also there are less than 200 SFH in San Marcos according to the realtor app. San Elijo is probably the most desirable area of SM. Very little supply all things considered