"But a non-speculative-market state (Ohio) currently has the highest foreclosure rate ever recorded in U.S history."
The way I see it, if there was a great salesman of subprime mortgages in an area (see: http://piggington.com/subprime_loans_made?size=_original ), with another link to get them in (like the Temecula guys did at their church), coupled with layoffs or other changes to the local economy, then we will see huge foreclosures.
California unfortunately has all of those, and an economy that was largely growing BECAUSE of the real estate increases.
I agree that "people all over the country should know by now that the market is in a downward trend".. it is just that some places have not much falling to do. The pain will not be as severe. Just my opinion as I sit and watch the inventories stay relatively mellow, sales & prices as well. Same old same old around here.
