“Pretty typical is a one-bedroom, one-bathroom house on East 98th Street in South Los Angeles, near the intersection of the Harbor Freeway and Century Boulevard. Its listing calls the 738-square-foot house ‘great for a growing family.’ The seller wants $85,000 for the house, which sold in 2006 for . . . $365,000.”

“Throughout Southern California, real estate agents say and sales records confirm that attractively priced foreclosed houses sell quickly and does not mean prices will go back up any time soon. ‘I am absolutely positive it’s still going down,’ said Dennis Findly, 18-year veteran of Inland Empire real estate. ‘If you’re looking at a home like this for $250,000, it looks like a good deal, but a year from now it could be $220,000 or $230,000,’ he said.”  California loan modifications and foreclosure statistics continue to send shock waves through the Westen real estate communities.  Read the complete Housing Bubble article > A Bidding War For Buyers In California.