PL, prices of housing in California are coming way down, along with the rest of the country. My mountain community had nothing under $250,000 last year, but this year there are several in the mid-$100,000 range.

Same with areas like the high desert (Victorville, Palmdale). But it would be scary to buy now, because with all the foreclosures you just don't know if your house will be in the middle of a ghost town with run-down yards within a few months.

Kate, I agree - let's hope for a long escrow so you have time to plan and find another place.