I am not sure I see a compelling reason for you to sell in this market. Much of the damage has been done and you will probably suffer a net cash loss if you sell. If you can continue to live there and not get too nervous about market gyrations, you will be OK. Just remember: a lot of people will be willing to do anything to be in your shoes and have your problems! Enjoy your life – there is more to living than crying over asset bubbles.
On a positive side, A good million $ home in a nice neighborhood in LA region is a good hedge against $ devaluation and inflation that is inevitable in the next 10 years. You will be a happier person by 2020.
