beselfish, to answer your question on where things are heading, all current signs still point downward. Although distressed property in 91914 and 91915 sells quickly after it is listed, REO lenders are in collusion with each other to “trickle out” one or two of the same or “mirror-image” models on the market at any one time, so as to hopefully create a “bidding war” among buyers and thus get a higher price than what the market would bear if all the distressed inventory was dumped on the market at once.

There is still a TREMENDOUS AMOUNT of “shadow inventory” in various stages of default/REO there which has yet to be marketed. I don’t think prices will completely “shake out” and stabilize in those areas (ALL built since 2000) until at least 2014.