The Voice of San Diego has this update on that city. "In 2006, spring has seen record numbers of people lining up to sell their homes, but there's been no subsequent rise in the rate of sales. Indeed, sales activity in April 2006 was down 30.7 percent from April 2005, despite the existence of almost 20,000 homes for buyers to choose from. That's the biggest year-on-year decrease in sales rates since April 1995."

"According to figures from DataQuick, median prices in the county have actually dropped over the last six months. And they've been dropping throughout what is usually the market's boom season: Spring. DataQuick's figures show that the price of all new homes, condos and single family homes combined, in San Diego has decreased 8.8 percent since December 2005."

"For existing single family homes, the median price has dropped 1.8 percent since November 2005, and for existing condos, the median price has dropped 1.3 percent."

"The discount real estate brokerage ZipRealty said some 33 percent of the San Diego County homes currently listed for sale on its Web site have reduced their prices."

"Greg Speaks, (who) provides most of the For Sale signs seen in the county, said business has been booming in the last few months. That's not surprising, given the recent spike in inventory, but Speaks said what's more interesting is that he's not been getting too many signs back from customers."

The Union Tribune. "A recent spike in default notices may be a sign that some homeowners are struggling to pay the adjustable-rate mortgages that now dominate lending in San Diego County's residential real estate market, analysts warn."

"Notices of default, the first step toward mortgage foreclosure, jumped 60 percent in the San Diego region in the first three months of this year, compared with the first quarter of last year, DataQuick reported. Neighboring Riverside County had a 64 percent jump in default notices over the last year."

"David Berson, chief economist for mortgage-investment giant Fannie Mae. However, Berson is troubled that foreclosure activity is rising during a period of economic growth. 'Normally this is a situation in which housing problems tend to go down, not up,' Berson said. 'If it continues, it could be a sign that borrowers are in financial distress.'"

"Longtime San Diego mortgage broker Ed Smith Jr. Smith has seen too many people who are willing to take financial risks for their slice of the American Dream. 'You have a hardworking family trying to buy home in a market where a starter home costs $500,000 to $550,000,' said Smiths. 'They are all looking for the lowest monthly payment. They don't plan for when the freight comes due on that ticket.'"

"In La Mesa, Erik Weichelt, a real estate agent who specializes in marketing or real estate owned properties acquired through foreclosure, said business is good. 'We have more REOs now than we have in the past three years,' Weichelt said. Until recently, 'there was no need for the foreclosure process; appreciation was so strong. People were able to refinance or sell the property and get a fresh start. Now, because of limited appreciation and some stagnation in the market, that is just not available.'"

Another California realtor is also doing well. "A year after shedding her blazer and slacks in favor of a bikini for a billboard advertisement in Belmont Shore, real estate agent Wendy Heath is doing just fine and then some. Visitors flocked to Heath's Web sites, either to view her advertisement or check out her listings."

"'Every once in a while you'll have an agent mention, 'Oh, you're the bikini Realtor,' Heath said. What's next? 'I never stop thinking, but I don't know what's next,' she said."