I havn't read the article, but i will pick it up and take a look. When you look at any market in can be broken down even further into neighborhood, you must not make the mistake as media sometimes does to generalize in order to make the number more impactful. That being said, i doubt danville, alamo, san ramon, or walnut creek will ever see a 38% drop. This number in my opinion is greatly exagerated. There might be a 38% drop in sales, which is a completely different number. Danville and that general area, will not be effected heavily by this market. I think all markets will have there bumps from the current situation. But i think that area is a different animal.
With alot of the market being hampered by subprime borrowers, and general adjustable loans. This area is one of the areas were i dont see this having as big of an effect. Protected by some of the best schools and environments to raise a family this area will always find a way to weather any bad market. Having lived in the area, and experienced the overall community, i dont see people in the area running for the hills and selling at discounts of 38% or even 10% for that matter. Not to say that you cant find some bargains or a couple of short sales and foreclosures her and there. It is just not going to be as big as other investment type communities and subprime markets.
In my opinion it is a great time to buy in the area, as long as you are going to stay in the property long enough to weather some small adjustments. The area will more than make up for it, it is beautiful place to live especially for a family.