I have to agree with PC, jan. Your logic seems a bit hypocritical. Chances are great that your new home will drop to below what you paid for it, and so will the Corona resales and foreclosures. Hopefully the increased taxes and energy costs don’t kill you. Just one year into the decline, we have a long ways to go to hit bottom, let alone appreciate into anything resembling a decent investment.

The same thing is going on here in Temecula. I had a chance last week to buy a brand new 2800sqft single story, fully upgraded granite, stainless built-ins, home theater speakers installed, for $360k. Two weeks earlier they were trying to sell for $450k. 6 months ago, they were $550k. The sales women kept calling me, and then offered 10k towards closing costs. After talking it over, we decided to pass, they (and everyone else) still have a ton of homes to sell. This is just the beginning, I can only imagine the deals that they will be offering next summer.