CA is a huge state. The real estate has to be tanking. I guess it is relative.
My family just sold a home in California - in one day. We had six showings the first day, next day we had four offers, one in cash - for $1.5 million. House is a wreck and was sold "as is" - so it looks like property is still extremely valuable here.
Homes in my old post-WW II neighborhood, around 14-1600 square feet are going in the $1 million dollar range. Home next door had a bidding war going and the price was jacked up (this was last year, my neighbor across the street fought off 14 people to buy her home.
We are outside of Los Angeles with our own power grid, police dept. and school system.
People still want to live here, it seems...(although a lot of the buyers are foreign).