I believe that the La Costa Valley will see some more depreciation. This spring will be particularly telling because I am personally hoping for a bump in the inventory. If we can get a bump in inventory and the sales remain relatively flat then I think you will get some of the depreciation you are looking for. Try to at least sit tight for the next few months. I do believe that there will be continued depreciation over the next several years but it will be at a slower pace, 3-5% per year is a guesstimate. Since this is your forever home then I think you are okay to sit it in it many years to ride out early depreciation.
A caviot would be a catalyst such as a quick rise in interest rates, or an extraordinary jump in inventory (that could be due to foreclosure activity).
