It looks as though you answered your own question.
Ever heard of the eye of the storm?
For the most part, Properties under 300,000 should do OK. However there will be a hiccup in the next few months. There are a great deal of adjustable loans resetting in January. November had huge rise in Notice of Defaults filed in Riverside County. In the area I show homes usually there have been around 400 a month in a 10 -15 zip code area, and November had nearly 750 in the same area. I imagine in April the number may rise to around 1200 homes getting their notice of default.
I think we can all look forward to home prices rising in August 2012.
Harold Sharpe - Broker
So Cal Homes Realty
California Department of Real Estate License # 01312992