The Union Tribune reports from California. "San Diego County housing prices dropped in 2006 for the first time in 11 years, apparently driven by a weak condominium and new-housing market, DataQuick reported. The overall median stood at $490,000 for the year, 0.8 percent below 2005's $494,000. It was the first time since 1995 there was a year-over-year drop."

"The new-housing category, which saw 11,481 sales, saw a 6.7 percent drop, from $476,000 in 2005 to $444,000 in 2006. Included in this group were numerouslower-priced condo conversions which outweighed higher-priced new construction."

"The single-family median was $540,000, down 1.8 percent from December 2005; resale condos was $380,000, down 2.6 percent; and new construction and conversions, were $460,000, down 14.7 percent."

The Orange County Register. "O.C.'s sellers and buyers of homes started the year on a slow note, says the math of Steve Thomas at Re/Max Real Estate Services in Aliso Viejo."

"It would take 7.78 months for buyers to gobble up all the houses and condos for sale at the current pace, vs. 7.51 months two weeks earlier, BUT still way above 4.85 months a year ago."

"Thomas notes: 'We are already starting the year with 4,000 additional homes on the market. There are going to be a number of unsuccessful sellers and the market time should remain above the five-month mark, which is equilibrium. At today’s 7.78 month inventory, we are already experiencing a buyers' market.'"

From a press release. "The Temecula law firm of Ackerman, Cowles & Lindsley filed a 1.2 billion dollar claim against what are alleged to be the perpetrators of a vast real estate and currency exchange scheme taking place in Southern California."

"Riverside County Superior Court Case No. RIC463483 was filed by an investor who claims to have suffered $3,000,000 in damages on her case alone. The plaintiff seeks to have the matter certified as a class action later this year because there are another alleged 400 investors in the alleged scheme."

"The amended complaint, filed on January 12, 2007, alleges that the operators of the Jovane Investment firm of Murrieta, and related businesses, engaged in a real estate scheme involving perhaps as many as 5000 home loans in the Southern California region."

"It is alleged in the complaint that defendants allegedly involved in the scheme would artificially inflate the values of the homes, complete 125% loan to value mortgages in certain cases, give escrow kickbacks to sellers who received as much as $100,000 more than an asking price, and sell the investors on the idea of giving up excess proceeds out of the sale to investment companies for a great profit over a period of years."

"In some cases, $50-60k-a-year salaried employees had mortgage obligations that were more than $20,000.00 a month because they 'owned' 5-8 homes. The defendant companies are alleged to have taken money from other investors to pay the mortgages on behalf of plaintiff and others. The scheme is alleged to be a traditional Ponzi scheme."