I’m not even going to consider getting into SoCal real estate until at least 2008. And by that, I mean actually doing the math, looking at whats available, etc. In the mean time I’m just going to enjoy the fireworks.

The main indicator I’m watching is foreclosures. Once that stabilizes I feel we will have gotten close enough to the bottom to consider buying. If the foreclosures are holding and the median is still dropping, I’ll turn to watching that.

Once the indicators have stabilized, assuming I’m cash flow positive and still have a job, I’ll work with a realtor to find me maybe a dozen properties that meet my criteria. I’ll then put out a low-ball offer (maybe 10% under) on all of them and see if I get any bites.