Paul, I think Michael Friedenberg's answer from 2009 was excellent. Today, in 2012, we have a better understanding of market trend and dynamics, and it's not looking all that positive over the next 2-4 years. As of July 2012, Sebastopol real estate value has fallen roughly 40-45% from its peak, and continues to fall at just under 1% per month (with an occasional meaningless uptick).
Based on a deepening Euro-recession (>11% Euro-zone unemployment) and bailout frenzy, worsening global debt overhang (expect $20T U.S. debt by 2015), huge remaining backlog of bank-owned homes waiting to be listed (2-3 million), and an epidemic of underwater mortgages in Sonoma County that's getting worse not better (40% of all mortgages in Sonoma County are now underwater, and growing), I see little basis for sustained value growth for at least 2 to 4 years. Alas, I see just the opposite -- continued downward pressure through 2015.