The next wave to hit California...

Some economists see a second wave of foreclosures coming. The onslaught will test the depths of buyer demand. According to DataQuick, banks took possession of roughly 7,000 houses and condos from July to January, but buyers have taken an equal amount off the market. That equates to 1,000 foreclosures selling per month.
As a result, the county's unsold foreclosure inventory has held steady around 3,300 homes. We have had more short-sales than REO or Bank owned homes on the market as of late, however if all the hipe is true it will once again be time to get into your 401K or retirement account and invest in the best thing going real estate. Face it - it may go down in price but it will always be an asset - and historically speaking California RE has always rebounded from the dips in the market.

Just as the prices were inflated and not "real" so are these low and deflated prices. Property will always have value as long as there is a demand.