Having witnessed several RE cycles in my lifetime (but none like the one we are witness to now, lol), I’m going to set my prediction here in stone.

For CA SFR’s, I believe there will be a another 20% (gradual) dip in markets where the majority of transactions are financed more than 50% LTV (read: markets where worker-bee buyers are prevalent). Markets where the typical transaction is more than 50% cash and retirement SFR/PUD markets will remain stable or +/- 10%. I predict it will be the third quarter of 2014 before all the current “shadow inventory” is resold at realistic prices and the resale market is back to “square one,” meaning a normal supply/demand market.