vrudny, I agree on mid-2004 as the peak and that we are already two years into the decline. This is how I knew it was. In Late Spring 2004, I had an investor client that wanted to submit an offer site unseen on a condo in the La Costa area that just came on the market. We submitted the offer within 24 hours of it going on the market. Noone had seen it yet. when I called the agent to submit the offer he said they stopped accepting offers because they already had 35 OFFERS IN LESS THAN 24 HOURS! Prices have been falling rapidly since this Spring. We are down as much as 20% in some areas maybe more already. Overall I’d say down 10 to 15% already is a good generalization. I think this will be over much quicker than most and expect to hit bottom as early as Nov/Dec 2007 after falling 30% off the peak. If not, the bottom should be hit by the end of 2008.