There is little difference between starter of this thread and the speculators of CA real estate market. I would not expect huge drops in real estate especially in good family neighborhoods. There is little incentive for the lenders, real estate industry and others to commoditize the business. The only thing to produce huge drops would be massive job lossses. I would expect significant number of folks reading this message board to be out of work. The most important thing is that do not expect big increases in real estate property values for the next 20-30 years.