At the previous peak of the market (late 1989) the house was worth perhaps $80K. At the bottom of the market in 1996 it fell to perhaps $50K, a decline of 38%. This is bigger than the average decline in San Diego, because this is (frankly!) a tiny shack in a bad neighborhood.
The house has already fallen by over 30% in the current decline, from $385K to $255K, which coincidentally is the July 2003 value. Any predictions how much further it will fall?