Literally the definition of a fire sale. Despite the fact that maybe they shouldn’t, the people in these areas have to money to rebuild almost immediately, and they absolutely will. A helping factor here is that the new homes will be built to current code spec, and will likely include improved fire defence measures (concrete siding, metal roofing, etc; a lot of the houses that went up still had wood shingle roofs that have been outlawed in CA for some time).