If you read anywhere about the home sales in San Diego, you will find most real estate agents are working very hard...some are doing well, most are not.  Carlsbad, Oceanside, parts of San Marcos like San Elijo Hills are still moving along in a typical fashion. 

San Diego and parts of the inland areas like Escondido, Poway and Rancho Bernardo are getting hit a little harder with foreclosures.  45% of the resale properties are bank owned foreclosures that are ultimately going to help get the market to the bottom so we can finally move on. 

Real estate flipping is still good, but not as hot as last year.  The competition is rought out there, and more and more players are buying notes from the banks to liquidate them for the betterment of everyone.  Mostly of course the investor. 

I still think investing in real estate in California is great!  Sure there will be some bumps, so you have to diversify.  Purchasing investment properties and renting them out might work, but not in southern california.  Also, using your IRA to buy a home might be a great idea!  Check with your CPA and investment planner. San Diego short sales can also be a great investment, but yo have to be patient. 

Thats it for now.  Good luck in this market.  We all need it!