I live in Fresno and MaryAnn's answer below is right on the money. Currently we have around 18 months worth of inventory and 25% of all homes for sale are either REO's or short sales? Inventory is up about 10% since January 1, 2008 and the market should remain soft for at least another 18-24 months. We are experiencing an increase in our unemployment rate that now stands around 11% due to the fact so many jobs related to the real estate industry have been eliminated over the last 2 years. Prices should continue to decline because our market is way out of balance from a supply and demand prospective.