As a broker of over 50 agents in 12 different counties, I am exposed to many different local markets and aware of their fluctuating prices in Northern California.

To answer the questions upfront, yes, the real estate market is in a general state of decline and may continue this trend (according to some experts) into half of next year. However, please keep in mind interest rates are low.  This low interest rate combined with the low house prices, provides for a great mortgage payment. IF house prices continue to decline and interest rates rise, the mortgage payments will most likely rise because MOST of a mortgage payment is interest. So, does it matter to the consumer that house prices havent bottomed out? No, but the consumer doesnt see the relationship of interest payments vs house prices. They just see the falling house prices and decide to wait.