I agree with you, I think the wine country area has more to fall. It is hard to compare to the properties in town because the houses with some acreage are all so diverse. There were a lot of spec homes built or half built that are coming on the market as well out there. I have seen some fixers at about 2000sf on 2.5 acres for the low 300s. With the current economic situation I think we can be assured that it will get worse before it gets better. I would say a few more years of declines. Maybe not as dramatic as the last 12 months but declines none the less. With unemployment climbing, stock market crashing, state budget in the dumper, I think there is a very large indication that this mess is not turning around any time soon.

All that being said, I am in the school of thought that when the right place comes up at the right price I will buy and not worry about going up down or sideways. I plan on living there a very very long time, God willing…

Good luck and if anyone is interested in this area I have been watching and have looked over almost all of the listings under 600 k out there. Would be happy to compare notes…
TL