House values dropping

I read in the Bee this morning that some state employee has a blog about the decline in housing values. It's called "Sacramento Area Flippers In Trouble" and shows houses for sale that sold recently, with previous and current (significantly lower) asking prices. Things definitely seem to be declining. The guy I used to work for here who left for Arizona sold his house a year ago for something like $899,000 and the buyer tried to flip it - put it on the market last January for $1.4 million. It didn't sell and has come on and off the market since then, most recently I think around $799,000.