According to CoreLogic, a real estate research firm, the number of people with underwater mortgages has declined from 11.3 million at the beginning of the year to 10.8 million at the end of September. and this is actually a good sign (even though the interest rate has gone back up). The complete article can be found at: http://www.realtor.org/RMODaily.nsf/pages/News2010121404?OpenDocument

As for market trends for single family houses and condominiums in Irvine and Tustin, the market has turned into a ‘neutral’ market. We already passed the bottom of the market. The market is starting to stabilize itself and the number of equity sales is increasing as well.