I live near Concord (3o min south) and work for a bank selling foreclosure properties. The current market in Northern & Southern California will end very badly. I would not be suprised to see declines of 20-40%, maybe more in the central valley & Sacramento, sometime in the next 3-5 years.
Way too many 100% loans that are adjustable rate and interest only. People are effectively leasing their $600K starter homes. Just like buying internet stocks on margin. Any big pop in short term rates (ie 150 basis points) will burst the bubble here.