Even with deflation, home/condo sale prices will still be supported by what comparable rent prices will be so there is going to be some floor on housing assuming people have jobs in the area and people are willing to live there (unlike Detroit which has neither it seems).
An 80k condo at a 5% rate with 20% down is $410/month. A 2 bedroom in the worst areas of San Diego probably rents for more than double that already.
