Based on this article and others that I have read on yahoo, it seems that California is seeing a sales increase. San Diego was ranked in the top 5 in the country for potential home value increase. They have predicted a 3% increase in home value over the next three years in San Diego. I somewhat agree with this prediction. Of course there are certain areas of the county that will see decreases, but overall there are still people actually moving here that need homes. They are still building in my neighborhood and selling each phase immediately. Just my thoughts.