While I agree that most of the drivel that comes from the RE industry is marketing propaganda, keep in mind that she is talking about California as a whole. When you look at all of California, prices are still up YOY:

The median price paid for a home last month was $466,000. That was down 1.3 percent from August’s $472,000, and up 2.4 percent from $455,000 for September a year ago.
http://www.dqnews.com/CHCA1006.shtm

However, if the trend in price declines continues by more than 1 percent each month, the idea of only a 2 percent drop will seem ludicrous.