The timing of this article is interesting since a guy I work with, just today, was talking about how a friend of his in Cali bought a $700k home for somewhere inside the $200's. California home sales surge as prices plummet Sep 18 07:19 PM US/Eastern By JACOB ADELMAN Associated Press Writer 54 Comments San Francisco Area Home Prices Plunge 31% LOS ANGELES (AP) - Home sales in California surged 13.6 percent in August as a flood of foreclosures drove down prices. The figures released Thursday by MDA DataQuick showed 37,988 new and preowned homes were sold statewide last month, up 13.6 percent from August 2007 but down 3.8 percent from July. The firm said 46.9 percent of all homes sold last month were foreclosed properties. That helped send the statewide median home price plunging 35.3 percent to $301,000 during the year ended in August. California home sales surge as prices plummet How about this beaut near the end of the article.