Regional fluctuations aren't reasonably predictable because in the aggregate who moves when, and under what circumstances has more to do with the local employment situation. The areas you mention, Natomas, Elk Grove and Antelope, are lower income regions, and those are the regions most harmed by corporate outsourcing and down-sizing. South Placer is a little more white collar and has a relatively vibrant local economy, so the answer to your question is no, South Placer will do better. But keep in mind, the inventory of REOs is still high, and as those arise and clear in various neighborhoods, local action could be surprising. The key, I believe, to the future, is to what extent the federal government remains in lending. Fannie Mae and Freddy Mac are running on fumes. Should the government ever abandon those or other substations, and if real estate loans drop to private investment only, the whole complexion of real estate is going to change. Not knowing when or to what extent this may manifest, the bottom line is if you're in a position to take a new loan now, I strongly suggest you do it. Prices will not stay this low forever, and interest rates will not stay this low forever either. Put a roof over your head, take the mortgage deduction and BORROW a reasonable amount for your income. The risk/reward is in YOUR FAVOR!