I fully agree that this is just the beginning, with subprime disappearing, and the fact that housing supply vs. population is WAY higher than ever before, we have just crested the top and it takes time to build up speed.

I have to disagree with SDR comments about not even seeing a 30% drop. This was the biggest boom ever, why won't it be the biggest bust ever? Just because a few of his favorite zip codes have modest listings, doesn't mean anything to stop the broader market.

ZipRealty recorded the biggest increases in the metro areas of Los Angeles (12.8%), San Francisco (12.2%) and Washington, D.C

When housing gets cheaper in LA, it gets cheaper in SD too.  Its not that different.