kev, I am watching (low-end) condos in south OC. Lake Forest is the price leader, and SJC, MV and RSM come next. All of the low-priced properties are distressed. However, they are not yet good deals. 90% of the cheap properties are in bad areas. South OC has only tiny pockets that are bad, but that’s where most of the cheap prices are, so far.
I have seen one or two low prices in decent areas, and I expect to see more in 2008. I haven’t seen much of note yet. A real volume of genuinely low prices in good areas will come from the distressed inventory, but from what I see it’s going slowly so far.
