My prediction is 50% drop from 2005 price in san Diego. Some areas are still appreciating , like LA. According to the last housing market cycle: It peaked in 1989 and the bottom was in 1996. So, it took 7 years to hit the bottom. This time the hosue maket peaked in 2005, so the bottom may in 2012. However, we may see around 25-30% price drop by next year, 2008. Then, it will drop slowly to hit the bottom by 2012.