After a slow year in 2007, the market has picked up quite a bit in San Diego and surprisingly, according to the tax assessor the prices have risen 4%. I know that doesn't seem like much, but it's a step in the right direction. I personally have noticed the drop in the amount of inventory available. The good homes are being bought. Also, I've experienced alot of Buyers that are buying with cash lately. I think it's a good sign of what's to come!